766. Requirements Where Initial Accounts Used
Past version: effective from 29/04/2020 - 28/04/2020
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(1) Initial accounts must be accounts that enable a reasonable judgment to be made as to the amounts of the items mentioned in section 763(1).
(2) Where initial accounts are prepared for a proposed distribution by a public company, the following requirements apply.
(3) The accounts must have been properly prepared, or have been so prepared subject to matters that are not material for determining (by reference to the items mentioned in section 763(1)) whether the distribution would contravene this Part.
(4) “Properly prepared” means prepared in accordance with section 387 (requirements for company individual accounts), applying those requirements with such modifications as are necessary because the accounts are prepared otherwise than in respect of an accounting reference period.
(5) The company's auditor must have made a report stating whether, in his opinion, the accounts have been properly prepared.
(6) If that report was qualified-
(a) the auditor must have stated in writing (either at the time of his report or subsequently) whether in his opinion the matters in respect of which his report is qualified are material for determining whether a distribution would contravene this Part, and
(b) a copy of that statement must have been laid before the company in general meeting.
(7) A copy of the accounts, of the auditor's report and of any auditor's statement must have been delivered to the Registrar.
Any requirement of these Regulations as to the delivery of a certified translation into English of any of those documents must also have been met.