- Latest available (Revised)
- Point in Time (22/03/2005)
- Original (As made)
Point in time view as at 22/03/2005.
There are currently no known outstanding effects for the The Companies Act 1985 (Operating and Financial Review and Directors' Report etc. ) Regulations 2005, Section 2.
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
2. For section 234 of the 1985 Act (duty to prepare directors' report)(1) substitute—
234. Duty to prepare directors' report
(1) The directors of a company shall for each financial year prepare a report (a “directors' report”) complying with the general requirements of section 234ZZA and containing—
(a)the business review specified in section 234ZZB, and
(b)if section 234ZA applies to the report, the statement as to disclosure of information to auditors required by that section.
(2) For a financial year in which—
(a)the company is a parent company, and
(b)the directors of the company prepare group accounts,
the directors' report must be a consolidated report (a “group directors' report”) relating, to the extent specified in the following provisions of this Part, to the company and its subsidiary undertakings included in the consolidation.
(3) A group directors' report may, where appropriate, give greater emphasis to the matters that are significant to the company and its subsidiary undertakings included in the consolidation, taken as a whole.
(4) In the case of a quoted company, a directors' report need not contain any information included in the operating and financial review for that financial year (see section 234AA).
(5) If a directors' report does not comply with the provisions of this Part relating to the preparation and contents of the report, every director of the company who—
(a)knew that it did not comply or was reckless as to whether it complied, and
(b)failed to take all reasonable steps to secure compliance with the provision in question,
is guilty of an offence and liable to a fine.
234ZZA. Directors' report: general requirements
(1) The directors' report for a financial year must state—
(a)the names of the persons who, at any time during the financial year, were directors of the company,
(b)the principal activities of the company in the course of the year, and
(c)the amount (if any) that the directors recommend should be paid by way of dividend.
(2) In relation to a group directors' report subsection (1)(b) has effect as if the reference to the company was a reference to the company and its subsidiary undertakings included in the consolidation.
(3) The report must also comply with Schedule 7 as regards the disclosure of the matters mentioned there.
(4) In Schedule 7—
Part 1 relates to matters of a general nature, including changes in asset values, directors' shareholdings and other interests and contributions for political and charitable purposes;
Part 2 relates to the acquisition by a company of its own shares or a charge on them;
Part 3 relates to the employment, training and advancement of disabled persons;
Part 5 relates to the involvement of employees in the affairs, policy and performance of the company;
Part 6 relates to the company’s policy and practice on the payment of creditors.
234ZZB. Directors' report: business review
(1) The directors' report for a financial year must contain—
(a)a fair review of the business of the company, and
(b)a description of the principal risks and uncertainties facing the company.
(2) The review required is a balanced and comprehensive analysis of—
(a)the development and performance of the business of the company during the financial year, and
(b)the position of the company at the end of that year,
consistent with the size and complexity of the business.
(3) The review must, to the extent necessary for an understanding of the development, performance or position of the business of the company, include—
(a)analysis using financial key performance indicators, and
(b)where appropriate, analysis using other key performance indicators, including information relating to environmental matters and employee matters.
(4) The review must, where appropriate, include references to, and additional explanations of, amounts included in the annual accounts of the company.
(5) In this section, “key performance indicators” means factors by reference to which the development, performance or position of the business of the company can be measured effectively.
(6) In relation to a group directors' report this section has effect as if the references to the company were references to the company and its subsidiary undertakings included in the consolidation.”
Commencement Information
I1Reg. 2 in force at 22.3.2005 (with effect in accordance with reg. 1(3)), see reg. 1(2)
Section 234 was substituted by section 8(1) of the Companies Act 1989, and amended by regulation 5 of S.I. 1996/189, by regulation 2 of S.I. 1997/571, and by section 9(2) of the Companies (Audit, Investigations and Community Enterprise) Act 2004. Section 234ZA was inserted by section 9(3) of the Companies (Audit, Investigations and Community Enterprise) Act 2004.
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Statutory Instrument accessible to readers who are not legally qualified and accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: