Part VIIIAccounts and Audit
CHAPTER IIExemptions, exceptions and special provisions
Private companies
Election to dispense with laying of accounts and reports before general meeting260. F1
(1)
A private company may elect (by elective resolution in accordance with Article 387A) to dispense with the laying of accounts and reports before the company in general meeting.
(2)
An election has effect in relation to the accounts and reports in respect of the financial year in which the election is made and subsequent financial years.
(3)
Whilst an election is in force, the references in the following provisions of this Order to the laying of accounts before the company in general meeting shall be read as references to the sending of copies of the accounts to members and others under Article 246(1)—
(a)
Article 243(1) (accounts on which auditors are to report),
(b)
Article 278(3) and (4) (accounts by reference to which distributions are justified), and
(c)
Article 328(2) (accounts relevant for determining company's net assets for purposes of ascertaining whether approval required for certain transactions);
and the requirement in Article 279(4) that the auditors' statement under that provision be laid before the company in general meeting shall be read as a requirement that it be sent to members and others along with the copies of the accounts sent to them under Article 246(1).
(4)
If an election under this Article ceases to have effect, Article 249 applies in relation to the accounts and reports in respect of the financial year in which the election ceases to have effect and subsequent financial years.