Extracts from the Companies Act 2006 (Chapter 4 Annual Accounts)

S.393 – Accounts to give a true and fair view

(1) The Directors of a company must not approve accounts for the purposes of this Chapter unless they are satisfied that they give a true and fair view of the assets, liabilities, financial position and profit and loss.

S.414 – Approval and signing of accounts

S414(4)If annual accounts are prepared that do not comply with the requirements of this Act (and, where applicable, of article 4 of the IAS Regulation) , every director of the company who

(a) Knew that they did not comply, or was reckless as to whether they complied and

(b) failed to take reasonable steps to secure compliance with those requirements or, as the case may be, to prevent the accounts from being approved,

commits an offence.

S414(5) A person guilty of an offence under this section is liable –

(a) on conviction on indictment, to a fine;

(b) on summary conviction, to a fine not exceeding the statutory maximum.

S450 - Approval and signing of abbreviated accounts

S450(4) If abbreviated accounts are approved that do not comply with the requirements of regulations under the relevant section, every director of the company who –

(a) Knew that they did not comply, or was reckless as to whether they complied and

(b) failed to take reasonable steps to secure compliance with those requirements or, as the case may be, to prevent the accounts from being approved,

commits an offence.

S450(5) A person guilty of an offence under subsection (4) is liable –

(a) on conviction on indictment, to a fine;

(b) on summary conviction, to a fine not exceeding the statutory maximum.

Current Statutory Maximum £5000 !