399. Approval and signing of accounts

(1) A company's annual accounts must be approved by the board of directors and signed on behalf of the board by a director of the company.
(2) The signature must be on the company's balance sheet.
(3) If the accounts are prepared in accordance with the small companies regime, the balance sheet must contain, in a prominent position above the signature:
(a) in the case of individual accounts prepared in accordance with the micro-entity provisions, a statement to that effect, or
(b) in the case of accounts not prepared as mentioned in subsection (3)(a), a statement to the effect that the accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
(4) If annual accounts are approved that do not comply with the requirements of these Regulations, 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,
(c) commits a contravention of these Regulations.
(5) A person who commits the contravention referred to in subsection (4) shall be liable to a fine of up to level 5.