Part VII Accounts and Audit

Chapter IIExemptions, Exceptions and Special Provisions

Small and medium-sized companies and groups

F1247A Cases in which special provisions do not apply

F2(1)

If a company is, or was at any time within the financial year to which the accounts relate, an ineligible company, sections 246 and 246A do not apply.

(1A)

If a company does not fall within subsection (1) but is, or was at any time within the financial year to which the accounts relate, a member of an ineligible group—

(a)

section 246(4) and (5)(b) and section 246A(2A) (provisions relating to directors' report) apply;

(b)

the other provisions of sections 246 and 246A do not apply.

(1B)

A company is ineligible if—

(a)

it is a public company,

(b)

it has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on F3a regulated activity , or

(c)

it carries on an insurance market activity.

(2)

A group is ineligible if any of its members is—

(a)

a public company or a body corporate which (not being a company) has power under its constitution to offer its shares or debentures to the public and may lawfully exercise that power,

F4(b)

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity, or

(c)

a person who carries on an insurance market activity.

(3)

A parent company shall not be treated as qualifying as a small company in relation to a financial year unless the group headed by it qualifies as a small group, and shall not be treated as qualifying as a medium-sized company in relation to a financial year unless that group qualifies as a medium-sized group (see section 249).