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Signing of accounts: directors and auditors
Subject to certain exemptions, a company that meets the small company criteria in respect of a financial year is exempt from the requirement to have an audit of accounts for that year. The conditions are:
- that the company qualifies as a small company in relation to that year,
- that its turnover in that year is not more than £5.6 million, and
- that its balance sheet total for that year is not more than £2.8 million.
It is important to note that there are many benefits and reasons for a company to have an audit. We will be pleased to discus these with you.
Companies that are not exempt include:
- A public company
- A company that is an authorised insurance company, banking company, an ISD investment firms or a UCITS management company, or a company that carries on insurance market activity.
- Dormant companies, subject to conditions
A company's accounts must be signed on the balance sheet by a director as approved by the board of directors.
Introduction
Timetable
- Provisions commenced in January 2007
- Provisions commenced in April 2007
- Provisions commenced from 1 October 2007
- Provisions commenced from 6 April 2008
- Provisions commenced from 1 October 2008
- Provisions commenced from 1 October 2009
The Act In Depth
General
- Forming a company
- Choosing a name for your company
- Changing the company name
- Registered office
- A company's members
- Shares and share capital
Directors
- Appointment of directors
- General duties of directors
- Directors transactions requiring members approval
- Loans to directors
- Related agreements
- Directors' service contracts
- Directors' liabilities
- Records of directors meetings
- Company secretary
