403. Contents of directors' report: statement as to disclosure to auditors

Past version: effective from 14/06/2015 - 13/06/2015
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(1) This section applies to a company unless—
(a) it is exempt for the financial year in question from the requirements of Part 15 as to audit of accounts, and
(b) the directors take advantage of that exemption.
(2) The directors' report must contain a statement to the effect that, in the case of each of the persons who are directors at the time the report is approved—
(a) so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and
(b) he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information.
(3) "Relevant audit information" means information needed by the company's auditor in connection with preparing his report.
(4) A director is regarded as having taken all the steps that he ought to have taken as a director in order to do the things mentioned in subsection (2)(b) if he has—
(a) made such enquiries of his fellow directors and of the company's auditors for that purpose, and
(b) taken such other steps (if any) for that purpose,
as are required by his duty as a director of the company to exercise reasonable care, skill and diligence.
(5) Where a directors' report containing the statement required by this section is approved but the statement is false, every director of the company who—
(a) knew that the statement was false, or was reckless as to whether it was false, and
(b) failed to take reasonable steps to prevent the report from being approved,
(c) commits a contravention of these Regulations.
(6) A person who commits the contravention referred to in subsection (5) shall be liable to a fine of up to level 4.