Incorporating a Business in Cyprus, Providing Cyprus incorporation, Cyprus LLC, Limited Liability Company, corporations, asset protection, tax planningForming Organizations, online company registration agent offering same day company formation, business bankingBusiness Entity Filing Forms, Bookkeeping Service offers Small Business Accounting and Bookkeeping services UK Companies Act 1989, Companies Act, Company Act 1989 Free. Parent company need not prepare group accounts for a financial year in relation to which the group headed by that company qualifies as a small or medium-sized group and is not an ineligible group. The Companies Act 1989 will have huge impact on solicitors, accountants and all company lawyers. 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, (b) an authorised institution under the Banking Act 1987, (c) an insurance company to which Part II of the Insurance Companies Act 1982 applies, or (d) an authorised person under the Financial Services Act 1986. If the directors of a company propose to take advantage of the exemption conferred by this section, it is the auditors' duty to provide them with a report stating whether in their opinion the company is entitled to the exemption. The exemption does not apply unless (a) the auditors report states that in their opinion, the company is so entitled, and (b) that report is attached to the individual accounts of the company. The order delegates the Secretary of State statutory functions in relation to auditors under part II of the Companies Act 1989 to the Financial Reporting. Companies: implementation of Part VII of the Companies Act 1989 (Financial markets and insolvency) draft regulations.
This applies to companies capable of being wound up under that Act. Section 348(1) of the Companies Act 1989 states: Every company shall paint or affix, and keep painted or affixed its name on the outside of every office or place in which its business is carried on, in a conspicuous position and in letters easily legible. Section 349(1)(d) of the Companies Act 1989 states: Every company shall have its name mentioned in legible characters in all its bills of parcels, invoices, receipts and letters of credit. Adding the requirements of the two Acts together, it would appear that the Business Names Act notice would suffice for both Acts and possibly one only would be required if it could be clearly seen and read from both inside and outside the premises (the doorway, perhaps). The Companies Act requires the name of the company, the Business Names Act requires an address as well. Address is not defined but we would interpret it as an address sufficient for papers to be served in person. A Post Office Box Number is not considered to be suitable. Where a banking company, or a company which is the holding company of a credit institution, prepares annual accounts for a financial year, it need not comply with the provisions of Part II of Schedule 6 (loans, quasi-loans and other dealings) in relation to a transaction or arrangement of a kind mentioned in section 330, or an agreement to enter into such a transaction or arrangement, to which that banking company or (as the case may be) credit institution is a party. In sub-paragraph (1) of paragraph 3, for the words from the beginning to that banking company for - there shall be substituted the words Where a banking company, or a company which is the holding company of a credit institution, takes advantage of the provisions of paragraph 2 of this Part of this Schedule for the purposes of its annual accounts for a financial year, then, in preparing those accounts, it shall comply with the provisions of Part III of Schedule 6 (other transactions, arrangements and agreements) only in relation to a transaction, arrangement or agreement made by that banking company or (as the case may be) credit institution for. In paragraph 3(4) and (5), for the word company there shall be substituted the words body corporate.
Section 459 Companies Act 1989. If a dispute arises between shareholders, after considering the small print of the Company Articles of Association, probably the next most important legal principle for any shareholder to understand is Section 459 of the Companies Act 1989. The most relevant part of the provision states as follows: A member of a company may apply to the court for an order under this Part on the ground that the company affairs are being or have been conducted in a manner which is unfairly prejudicial to the interests of its members generally or of some part of its members added; a member is simply a shareholder. The section is, in itself, worded in a very legalistic manner and many lawyers find it difficult to understand, so what chance does the layman have? What the section seeks to do is protect minority shareholders (those with a 50% shareholding or less) in circumstances where the majority shareholders seek to act in a way which is unfairly prejudicial to their interests.
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SCHEDULE 6. Exemptions for Small and Medium-sized Companies



ARRANGEMENT OF SECTIONS

Part I. Company Accounts

Part II. Eligibility for Appointment as Company Auditor

Part III. Investigations and Powers to Obtain Information

Part IV. Registration of Company Charges

Part VI. Mergers and Related Matters

Part VII. Financial Markets and Insolvency

Part VIII. Amendments of the Financial Services Act 1986

Part IX. Transfer of Securities

Part X. Miscellaneous and General Provisions

SCHEDULE 1. Form and Content of Company Accounts

SCHEDULE 2. Form and Content of Group Accounts

SCHEDULE 3. Disclosure of Information: Related Undertakings

SCHEDULE 4. Disclosure of Information: Emoluments and Other Benefits of Directors and Others

SCHEDULE 5. Matters to be included in Directors' Report

SCHEDULE 6. Exemptions for Small and Medium-sized Companies

SCHEDULE 7. Special Provisions for Banking and Insurance Companies and Groups

SCHEDULE 8. Special Provisions for Banking or Insurance Companies

SCHEDULE 9. Parent and Subsidiary Undertakings: Supplementary Provisions

SCHEDULE 10. Amendments Consequential on Part I

SCHEDULE 11. Recognition of Supervisory Body

SCHEDULE 12. Recognition of Professional Qualification

SCHEDULE 13. Supplementary Provisions with Respect to Delegation Order

SCHEDULE 14. Supervisory and qualifying bodies: Restrictive practices

SCHEDULE 15. Charges on Property of Oversea Companies

SCHEDULE 16. Amendments Consequential on Part IV

SCHEDULE 17. Company Contracts, Seals

SCHEDULE 18. Subsidiary and related expressions

SCHEDULE 19. Minor amendments of the Companies Act 1985

SCHEDULE 20. Amendments about mergers and related matters

SCHEDULE 21. Additional requirements for recognition

SCHEDULE 22. Financial Markets and Insolvency

SCHEDULE 23. Consequential Amendments of the Financial Services Act 1986

SCHEDULE 24. Repeals
Coddan Pracrice Groups
Publishing Rights: Coddan CPM Core Licence (HMSO) number is C02W0007897 issued on 25 November 2005 by HMSO Licensing Division (Core Licence.pdf Licence to reproduce public sector information).

Companies Act 1989
1989 c. 40 - continued
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SCHEDULE 6
Section 13(2). 
 [Schedule 8 to the Companies Act 1985]
 Exemptions for Small and Medium-sized Companies
 

Part I
 
Small Companies
 
Balance sheet
    1.—(1)  The company may deliver a copy of an abbreviated version of the full balance sheet, showing only those items to which a letter or Roman number is assigned in the balance sheet format adopted under Part I of Schedule 4, but in other respects corresponding to the full balance sheet.

    (2)  If a copy of an abbreviated balance sheet is delivered, there shall be disclosed in it or in a note to the company's accounts delivered—
    (a)  the aggregate of the amounts required by note (5) of the notes on the balance sheet formats set out in Part I of Schedule 4 to be shown separately for each item included under debtors (amounts falling due after one year), and
    (b)  the aggregate of the amounts required by note (13) of those notes to be shown separately for each item included under creditors in Format 2 (amounts falling due within one year or after more than one year).
    (3)  The provisions of section 233 as to the signing of the copy of the balance sheet delivered to the registrar apply to a copy of an abbreviated balance sheet delivered in accordance with this paragraph.
 
Profit and loss account
    2.    A copy of the company's profit and loss account need not be delivered.
 
Disclosure of information in notes to accounts
    3.—(1)  Of the information required by Part III of Schedule 4 (information to be given in notes to accounts if not given in the accounts themselves) only the information required by the following provisions need be given—
    paragraph 36 (accounting policies),

    paragraph 38 (share capital),

    paragraph 39 (particulars of allotments),

    paragraph 42 (fixed assets), so far as it relates to those items to which a letter or Roman number is assigned in the balance sheet format adopted,

    paragraph 48(1) and (4) (particulars of debts),

    paragraph 58(1) (basis of conversion of foreign currency amounts into sterling),

    paragraph 58(2) (corresponding amounts for previous financial year), so far as it relates to amounts stated in a note to the company's accounts by virtue of a requirement of Schedule 4 or under any other provision of this Act.


    (2)  Of the information required by Schedule 5 to be given in notes to the accounts, the information required by the following provisions need not be given—
    paragraph 4 (financial years of subsidiary undertakings),

    paragraph 5 (additional information about subsidiary undertakings),

    paragraph 6 (shares and debentures of company held by subsidiary undertakings),

    paragraph 10 (arrangements attracting merger relief).


    (3)  Of the information required by Schedule 6 to be given in notes to the accounts, the information required by Part I (directors' and chairman's emoluments, pensions and compensation for loss of office) need not be given.
 
Directors' report
    4.    A copy of the directors' report need not be delivered.
 

Part II
 
Medium-sized Companies
 
Profit and loss account
    5.    The company may deliver a profit and loss account in which the following items listed in the profit and loss account formats set out in Part I of Schedule 4 are combined as one item under the heading "gross profit or loss"—
    Items 1, 2, 3 and 6 in Format 1;

    Items 1 to 5 in Format 2;

    Items A.1, B.1 and B.2 in Format 3;

    Items A.1, A.2 and B.1 to B.4 in Format 4.
 
Disclosure of information in notes to accounts
    6.    The information required by paragraph 55 of Schedule 4 (particulars of turnover) need not be given.
 

Part III
 
Supplementary Provisions
 
Statement that advantage taken of exemptions
    7.—(1)  Where the directors of a company take advantage of the exemptions conferred by Part I or Part II of this Schedule, the company's balance sheet shall contain—
    (a)  a statement that advantage is taken of the exemptions conferred by Part I or, as the case may be, Part II of this Schedule, and
    (b)  a statement of the grounds on which, in the directors' opinion, the company is entitled to those exemptions.
    (2)  The statements shall appear in the balance sheet immediately above the signature required by section 233.
 
Special auditors' report
    8.—(1)  If the directors of a company propose to take advantage of the exemptions conferred by Part I or II of this Schedule, it is the auditors' duty to provide them with a report stating whether in their opinion the company is entitled to those exemptions and whether the documents to be proposed to be delivered in accordance with this Schedule are properly prepared.

    (2)  The accounts delivered shall be accompanied by a special report of the auditors stating that in their opinion—
    (a)  the company is entitled to the exemptions claimed in the directors' statement, and
    (b)  the accounts to be delivered are properly prepared in accordance with this Schedule.
    (3)  In such a case a copy of the auditors' report under section 235 need not be delivered separately, but the full text of it shall be reproduced in the special report; and if the report under section 235 is qualified there shall be included in the special report any further material necessary to understand the qualification.

    (4)  Section 236 (signature of auditors' report) applies to a special report under this paragraph as it applies to a report under section 235.
 
Dormant companies
    9.    Paragraphs 7 and 8 above do not apply where the company is exempt by virtue of section 250 (dormant companies) from the obligation to appoint auditors.
 
Requirements in connection with publication of accounts
    10.—(1)  Where advantage is taken of the exemptions conferred by Part I or II of this Schedule, section 240 (requirements in connection with publication of accounts) has effect with the following adaptations.

    (2)  Accounts delivered in accordance with this Schedule and accounts in the form in which they would be required to be delivered apart from this Schedule are both "statutory accounts" for the purposes of that section.

    (3)  References in that section to the auditors' report under section 235 shall be read, in relation to accounts delivered in accordance with this Schedule, as references to the special report under paragraph 8 above.
 
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