The Companies Act 1985 (Miscellaneous Accounting Amendments) Regulations 1996

Amendment of Schedules

14.—(1) Schedule 4 to the 1985 Act (form and content of company accounts)(1) is amended in accordance with Schedule 1 to these Regulations.

(2) Schedule 4A to the 1985 Act (form and content of group accounts)(2) is amended in accordance with Schedule 2 to these Regulations.

(3) Schedule 5 to the 1985 Act (disclosure of information: related undertakings)(3) is amended in accordance with Schedule 3 to these Regulations.

(4) The following provisions of Schedule 7 to the 1985 Act (matters to be dealt with in the directors' report) are hereby repealed—

(a) paragraph 1(1) (significant changes in fixed assets)(4),

(b) paragraph 5A (insurance effected for officers or auditors)(5), and

(c) Part IV (health, safety and welfare at work of company’s employees).

(5) At the end of that Schedule insert the following Part—

“PART VI POLICY ON THE PAYMENT OF CREDITORS

12.— (1) This Part of this Schedule applies to a report by the directors of a company for a financial year if—

(a) the company was at any time within the financial year a public company, or

(b) the company did not qualify as small or medium-sized in relation to the financial year by virtue of section 247 and was at any time within the year a member of a group of which the parent company was a public company.

(2) The report shall, with respect to the financial year immediately following that covered by the report, state—

(a) whether in respect of some or all of its suppliers it is the company’s policy to follow any code or standard on payment practice and, if so, the name of the code or standard and the place where information about, and copies of, the code or standard can be obtained,

(b) whether in respect of some or all of its suppliers it is the company’s policy—

(i) to settle the terms of payment with those suppliers when agreeing the terms of each transaction,

(ii) to ensure that those suppliers are made aware of the terms of payment, and

(iii) to abide by the terms of payment,

(c) where the company’s policy is not as mentioned in paragraph (a) or (b) in respect of some or all of its suppliers, what its policy is with respect to the payment of those suppliers.

(3) If the company’s policy is different for different suppliers or classes of suppliers, the report shall identify the suppliers or classes of suppliers to which the different policies apply.

(4) For the purposes of this Part of this Schedule a supplier is any person whose claim on the reporting company in respect of goods or services supplied would be included under “trade creditors” within “Creditors; amounts falling due within one year” in a balance sheet drawn up in accordance with balance sheet format 1 in Schedule 4.”

(6) Schedule 9 to the 1985 Act (form and content of accounts of banking companies and groups)(6) is amended in accordance with Schedule 4 to these Regulations.

(7) Schedule 9A to the 1985 Act (form and content of accounts of insurance companies and groups)(7) is amended in accordance with Schedule 5 to these Regulations.

(8) Schedule 11 to the 1985 Act (modifications of Part VIII where company’s accounts prepared in accordance with special provisions for banking or insurance companies)(8) is amended in accordance with Schedule 6 to these Regulations.

(1)

Schedule 4 was amended by section 4(2) of, and Schedule 1 to, the Companies Act 1989.

(2)

Schedule 4A was inserted by section 5(2) of, and Schedule 2 to, the Companies Act 1989.

(3)

Schedule 5 was substituted by section 6 of, and Schedule 4 to, the Companies Act 1989.

(4)

Paragraph 1 of Schedule 7 was amended by section 8(2) of, and paragraph 2 of Schedule 5 to, the Companies Act 1989.

(5)

Paragraph 5A of Schedule 7 was inserted by section 137(2) of the Companies Act 1989.

(6)

Parts I to III of Schedule 9 were inserted before a re-numbered Schedule 9A by regulation 5 of, and Schedule 1 to, S.I. 1991/2705. Part IV of Schedule 9 was substituted by section 18(3) and (4) of, and Part IV of Schedule 7 to, the Companies Act 1989.

(7)

Parts I and II of Schedule 9 to the Companies Act 1985 were formed into a new Schedule 9A by regulation 5(1) of S.I. 1991/2705. A new Schedule 9A was substituted by regulation 4 of, and Schedule 1 to, S.I. 1993/3246.

(8)

Schedule 11 was amended by regulation 7 of, and paragraph 1 of Schedule 3 to, S.I. 1991/2705, and by regulation 5 of, and paragraph 8 of Schedule 2 to, S.I. 1993/3246.