s80 Financial Statements

80A Right to require financial statements to be prepared

 
(1) If a company has not prepared financial statements for a continuous period of 18 months or more, any member or director of the company may at any time demand that financial statements be prepared for the period since the end of the financial period to which the preceding financial statements relate or, if none, since the incorporation of the company and made up to such date as is specified in the demand, not being later than the date of demand.

(2) A demand under subsection (1) shall be made in writing and deposited at the registered office of the company.

(3) The financial statements must be prepared by the company within 6 months of the date of deposit of the demand.

(4) A company that contravenes subsection (1) commits an offence.

[S 80A inserted by Companies (Amendment) Act 2009 s 29.]

 

80B Additional provisions concerning presentation of financial statements
(1) Whenever financial statements are prepared-

(a) the statement referred to in section 80(3)(a) must give a true and fair view of the state of affairs of the company at the end of the financial period to which it relates; and

(b) the statement referred to in section 80(3)(b) must give a true and fair view of the receipts, payments and other financial transactions undertaken by the company for the financial period to which it relates.

(2) Subsection (1) is subject to subsections (3) and (4).

(3) Unless regulations made under subsection (4) require compliance with standards or the adoption of practices which are not consistent with generally accepted accounting principles or practice, in determining how amounts are presented within items within the statements referred to in section 80(3)(a) and (b) the directors of a company must have regard to the substance of the reported transaction or arrangement in accordance with generally accepted accounting principles or practice.

(4) The Financial Supervision Commission may make regulations which, in such circumstances and for such purposes as are prescribed, require compliance with standards or the adoption of practices recommended by a body specified in the regulations, and which may in particular require compliance with standards or the adoption of practices recommended by that body from time to time (that is, after as well as before the making of the regulations).

(5) Regulations under subsection (4) shall not come into operation unless they are approved by Tynwald.

(6) In this section, ‘generally accepted accounting principles or practice’ means accounting standards and practices recommended by-

(a) the International Accounting Standards Board (International Financial Reporting Standards);

(b) the Accounting Standards Board (United Kingdom Accounting Standards) (UK GAAP); or

(c) the Financial Accounting Standards Board, the Government Accounting Standards Board or the Federal Accounting Standards Advisory Board (US GAAP).

[S 80B inserted by Companies (Amendment) Act 2009 s 29.]
80C Auditor to be qualified
(1) This section applies where an auditor is to be appointed by a company (whether or not under compulsion of law or other obligation).

(2) Without prejudice to the generality of subsection (1), a company must appoint an auditor where the company’s securities are listed or admitted to trade on a securities market or exchange.

(3) Where this section applies, the company must appoint an auditor who is qualified for appointment under this section to audit its financial statements.

(4) Subject to subsection (6), a person or body shall not be qualified for appointment as auditor of a company (within the meaning of this Act) unless that person or body is qualified for appointment as auditor under sections 14 to 14H of the Companies Act 1982 of a company (within the meaning of that Act).

(5) Without prejudice to the generality of subsection (4), an application may be made under section 14E of the Companies Act 1982 for authorisation under that section to be appointed as auditor of a company (within the meaning of this Act) in the same manner and subject to the same provisions as an application under that section for authorisation to be appointed as auditor of a company (within the meaning of that Act).

(6) Regulations under section 80E may modify the application of subsection (4).

[S 80C inserted by Companies (Amendment) Act 2009 s 29.]