Part VIII Accounts and Audit

Accounts

75 Directors’ report.

(1)

The directors of a building society shall prepare for submission to the annual general meeting a report on the business of the society containing—

F1(a)

a fair review of the business of the society and its connected undertakings (if any), complying with section 75A,

(aa)

a description of the principal risks and uncertainties facing the society and its connected undertakings (if any),

(b)

such information relating to such aspects of the business of the society or the society and any F2connected undertakings as may be prescribed by regulations made by the F3. . . Treasury, and

F4(c)

a statement as to the matters mentioned in subsection (1A) below.

F5(1A)

The said matters are—

(a)

whether the society has acquired or established, or allowed a subsidiary undertaking to acquire or establish, a business to which subsection (3) and subsection (4) or, as the case may be, subsection (5) of section 92A applied;

(b)

if the society has acquired or established, or allowed such an undertaking to acquire or establish, such a business, what the business is and whether the society complied with the requirements of subsection (1) of that section; and

(c)

if the society did not comply with those requirements, why the society nevertheless proceeded, or allowed the undertaking to proceed, with the acquisition or establishment.

F6(1B)

If the building society has subsidiary undertakings, the report may, where appropriate, give greater emphasis to those matters which are significant to the society and its subsidiary undertakings taken as a whole.

F7(2)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)

The power to make regulations under subsection (1) above is exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(4)

If a directors’ report does not contain F8the review, information and statement required by subsection (1) above and, where applicable, the review required by subsection (2) above, each director shall be liable on conviction on indictment or on summary conviction to a fine not exceeding, on summary conviction, the statutory maximum.