Hi, what is best practice for disclosing the accounts to shareholders before submitting them to Company House?
Shareholder not shown accounts before submitted to company house
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Post them to their service addresses, as held on the register of members.
Or do you mean when? It is a criminal offence to fail to send them to the members before the filing deadline or before sending them to Companies House. As discussed on another current thread, Companies House won't prosecute, as they can be obtained for free from their web site.
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The responsible Director ( or Company secretary ) arranges for the annual accounts to be prepared and approved by the Board of Directors and then a copy is filed at Companies House. Its not a requirement for shareholders to see the company accounts before filing at Companies House.
For service charge accounts , a copy of accounts is normally posted to leaseholders about one month together with letter informing date of the annual meeting called for leaseholders.
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Originally posted by Gordon999 View PostTIts not a requirement for shareholders to see the company accounts before filing at Companies House.
I think this was probably introduced when AGMs were made optional.
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Originally posted by leaseholder64 View PostPost them to their service addresses, as held on the register of members.
Or do you mean when? It is a criminal offence to fail to send them to the members before the filing deadline or before sending them to Companies House. As discussed on another current thread, Companies House won't prosecute, as they can be obtained for free from their web site.
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Originally posted by Gordon999 View PostThe responsible Director ( or Company secretary ) arranges for the annual accounts to be prepared and approved by the Board of Directors and then a copy is filed at Companies House. Its not a requirement for shareholders to see the company accounts before filing at Companies House.
For service charge accounts , a copy of accounts is normally posted to leaseholders about one month together with letter informing date of the annual meeting called for leaseholders.
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Originally posted by leaseholder64 View Post
The criminal offence is under section 425 and the requirement is in section 424(2): https://www.legislation.gov.uk/ukpga...46/section/424
I think this was probably introduced when AGMs were made optional.
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If Companies House won't enforce it, as a private prosecution. However, you are not going to get much sympathy for a prosecution to obtain accounts that will only tell you the book value of freehold, which quite possibly is only £1.
You continually seem to be looking for non-consequential things with which to beat the company over the head.
It doesn't matter if the directors don't turn up at a meeting, as long as you have a quorum. If you don't have a quorum, without the directors, you are not going to be able to outvote them, even if they turn up, given that the usual quorum is 2, so you can only rely on criminal law.
Failing to honour section 21 and 22 rights is also something, where the only open option is likely to be a private prosecution.
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Originally posted by leaseholder64 View PostIf Companies House won't enforce it, as a private prosecution. However, you are not going to get much sympathy for a prosecution to obtain accounts that will only tell you the book value of freehold, which quite possibly is only £1.
You continually seem to be looking for non-consequential things with which to beat the company over the head.
It doesn't matter if the directors don't turn up at a meeting, as long as you have a quorum. If you don't have a quorum, without the directors, you are not going to be able to outvote them, even if they turn up, given that the usual quorum is 2, so you can only rely on criminal law.
Failing to honour section 21 and 22 rights is also something, where the only open option is likely to be a private prosecution.
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I'm a leaseholder and company member in relation to my flat. The company is limited by guarantee, so I'm not a shareholder.
I am a shareholder of non-property companies.
I am a member of several non-property limited by guarantee companies.
I have been a director, but am not currently one.
Most of my company law knowledge law relates to being a member of an RMC.
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Originally posted by leaseholder64 View PostI'm a leaseholder and company member in relation to my flat. The company is limited by guarantee, so I'm not a shareholder.
I am a shareholder of non-property companies.
I am a member of several non-property limited by guarantee companies.
I have been a director, but am not currently one.
Most of my company law knowledge law relates to being a member of an RMC.
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Originally posted by Stacker View Post...however put your self in the position of a shareholder who is being completely frozen out...and has no power to change stuff....
In situations like this, the people who are in the minority are typically best off forgetting about challenging things as a shareholder/company member and challenging as a leaseholder. However, if doing this, this need to bear in mind that they may be responsible for a share of the companies costs in defending any action against them - even if they win a legal challenge against the company.
In this sort of situation, individual leaseholders whose views are outnumbered by other leaseholders, are often better off with an independent freeholder who they can challenge rathe than as a shareholder of a management company. This is why the push for abolishing leasehold in favour of common hold is a bad idea - common hold only works in situations where everyone involved takes into account the interests of everyone in a block and adheres to the requirements of the leases, but many people are only interested in what benefits them personally.
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Shareholders of private limited companies registered in England and in Wales have a statutory entitlement to be provided with a copy of the company's annual accounts and related documentation. This right is pursuant to sections 423, 424 and 431 of the Companies Act 2006 (the Act).
Under section 431 of the Act a shareholder is entitled to be provided (without charge) with:
the latest annual accounts;
the strategic report (if any) for the last financial year;
the latest directors' report; and
the auditor's report on the accounts.
A failure to comply with a demand sent by a shareholder under section 431 is a criminal offence.
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Hi Stacker,
Having been down this route myself and through a complaint with Ombudsman Services Property you may be wasting your time.
If your company qualifies under small company regime no strategic report or auditor's report is required, the company can also choose whether to file the director's report or not.
My company filed dormant accounts online so no director's report was filed.
I was informed I was entitled to a copy of the accounts that had been filed, however as no director's report was included I was not entitled to anything further than the dormant accounts.
I was further informed that the accounts had been filed at CH where I could have downloaded them free of charge.
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Originally posted by fos333 View PostHi Stacker,
Having been down this route myself and through a complaint with Ombudsman Services Property you may be wasting your time.
If your company qualifies under small company regime no strategic report or auditor's report is required, the company can also choose whether to file the director's report or not.
My company filed dormant accounts online so no director's report was filed.
I was informed I was entitled to a copy of the accounts that had been filed, however as no director's report was included I was not entitled to anything further than the dormant accounts.
I was further informed that the accounts had been filed at CH where I could have downloaded them free of charge.
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