430. Application to Court in respect of defective accounts
Past version: effective from 21/10/2015 - 20/10/2015
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(1) An application may be made to the Court —
(a) by the Registrar, after having complied with section 429 (Registrar's notice in respect of accounts), or
(b) by a person authorised by the Registrar for the purposes of this section, for a declaration that the annual accounts of an LLP do not comply with the requirements of the Companies Regulations and for an order requiring the members of the LLP to prepare revised accounts.
(2) Notice of the application, together with a general statement of the matters at issue in the proceedings, shall be given by the applicant to the Registrar for registration.
(3) If the Court orders the preparation of revised accounts, it may give directions as to —
(a) the auditing of the accounts, and
(b) the taking of steps by the members to bring the making of the order to the notice of persons likely to rely on the previous accounts,
and such other matters as the Court thinks fit.
(4) If the Court finds that the accounts did not comply with the requirements of the Companies Regulations it may order that all or part of —
(a) the costs of and incidental to the application, and
(b) any reasonable expenses incurred by the LLP in connection with or in consequence of the preparation of revised accounts,
(c) are to be borne by such of the members as were party to the approval of the defective accounts.
For this purpose every member of the LLP at the time of the approval of the accounts shall be taken to have been a party to the approval unless he shows that he took all reasonable steps to prevent that approval.
(5) Where the Court makes an order under subsection (5) it shall have regard to whether the members party to the approval of the defective accounts knew or ought to have known that the accounts did not comply with the requirements of the Companies Regulations, and it may exclude one or more members from the order or order the payment of different amounts by different members.
(6) On the conclusion of proceedings on an application under this section, the applicant must send to the Registrar for registration a copy of the Court order or, as the case may be, give notice to the Registrar that the application has failed or been withdrawn.
(7) The provisions of this section apply to revised annual accounts, in which case they have effect as if the references to revised accounts were references to further revised accounts.