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.
- How much did you pay for your website 1,697 29
- any implications of this type of transaction 65 2
- Mem & Arts - Multiple Share Classes & Rights 22 1
- Does IR35 apply? 86 1
- Capital allowances or revenue is capital? 102 1
- Sage 50 cost centre limitations 103 3
- What font do you prefer to use for correspondence? 292 11
- Straightforward email correspondence or PDF letter attached to blank email? 1,033 13
- How to post Sales figures in Sage50 Accounts (we use separate Sales ledger) 268 7
- Sage data 109 1
- Course costs for retraining as a barrister 422 9
- Limited company buying a car 364 6
- Funding Circle experience 162 3
- Excel query 127 2
- Do I need to pay my accountant 1,300 13
- Payment on account penalties 136 3
- Tax on free shares 150 5
- Flat Rate Vat 14.5% and 5% reduced rate VAT 211 3
- Capital allowances on sale and puchase of business assets 130 1
- Audit 493 14
- CTA study material 806
- Anyone have clients that use Pay4Later to offer customers credit? 498
- Raiders of the Lost Tax File 461
- Employment related securities question 324
- AIM Stocks and IHT 312
- Tax Relief for overseas employees 284
- Expat pension contributions? 282
- Trust for Employee 257
- Service Charge Accountant Career Options 235
- IPP (International Pension Plan) income 161