When is a Group not a Group for accounting purposes?
XYZ Holdings Plc, an unquoted UK registered company. The company has over 200 "B" shareholders with no voting rights, who have subscribed around £4.7 million. The "A" shares, which carry voting rights, are owned by the founders who put in just £200.
The capital put into XYZ Holdings Plc is actually spent by a company called XYZ Ltd. Both companies share the same offices and the same directors. XYZ Holdings Plc owns 99.999% of XYZ Ltd in the form of "B" shares; the remaining 0.001% (just two "A" shares) are held by founders.
The Prospctus for XYZ Holdings Plc stated that the two companies would together form the "XYZ Group". However they file individual accounts, each with a different year-end date and have never submitted Group Accounts to Companies House. Having different year-end dates obviously makes the accounts less than transparent, added to which several years of accounts for both companies have never been submitted to Companies House and never shown to the shareholders. My understanding is that under the Companies Act a group of companies is required to file Group Accounts.
Their auditors tell me that the companies are "not a Group for accounting purposes". I would like to know whether a Group of companies like this can elect not to produce Group Accounts just because it suits them and which law allows them to do so.
- Lets hear it for HMRC! 312 3
- UK Accountancy Franchise 380 11
- Don't HMRC collect CT anymore? 242 2
- HMRC stupidity of the day 99 2
- Newly Started Practice 715 14
- Sage Payroll 171 4
- PAYROLL - SAGE v Microsoft Payroll Manager 170 3
- Client's company struck off 803 19
- Bookkeeping software for cafe and VAT 199 3
- Clients 754 15
- Simplified auto enrolment? 216 2
- Tax and children 185 1
- ACCA, ACPA, IFA, ICPA 584 8
- Does SMP and SPP go up if leave goes across 2 tax years? 399 16
- Directors obligation to notify 153 1
- Starting new accounting business 355 6
- Leaving the flat rate scheme 168 4
- error on companies house accounts 773 18
- RTI penalties 171 1
- How do we get US withholding tax back? 333 5
- QROP pension input amounts 506
- HMRC BENCHMARK EXPENSES 491
- write off loan or loan to equity swap or both 451
- EPS and CIS deductions 309
- Sole trade business in UK, but the owner works from EU 299
- Construction CIS LLP Company 290
- Stamp duty on house transfer between spouses 255
- SAGE winforecast 210
- LIVE: Budget aftermath webinar 196
- Overdrawn director account 183