How do shareholders of an Isle of Man Company remove directors ?
November 8, 2014

The Accounting requirements for a 1931 Act Company are contained within part 1 of the 1982 Companies Act. It’s quite prescriptive and requires that financial statements must be prepared in the required statutory form annually. Bizarrely, it’s a criminal offence to circulate a balance sheet for a 1931 Company unless it has been signed by 2 directors.

Accounting requirements for a 2006 Act company are much more straightforward and are to be found in Section 80 of the Act. The first part of Section 80 relates to record keeping and says..

80 Companies to keep accounting records

(1) A company shall keep reliable accounting records which-
(a) correctly explain the transactions of the company; and
(b) enable the financial position of the company to be determined with reasonable accuracy at any time; and
(c) allow financial statements to be prepared.

Further parts A, B & C provide certain rights to shareholders which enable them to require formal accounts to be produced and also to require an Audit. See here

Generally speaking, it’s fair to say that the requirements are more flexible as the production of accounts is not mandated by the Act. (Although for Manx resident beneficial owners, Income tax department will require them anyway so its rather a mute point.)

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