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Group Accounts:
S.150(1) provides that if, at the end of its financial year, a company has subsidiaries, then it must include in its annual accounts "group accounts" dealing with the affairs of the subsidiaries as well.
By s.150(2)(b) group accounts need not deal with a subsidiary of the company if the company's directors are of opinion that -
i. it is impracticable, or would be of no real value to the members of the company, there in view of the irrelevant amounts concerned, or would engage expense or delay out of proportion to the value to members of the company; or
ii. the result would be misleading; or
iii. the result would be injurious to the business of the company or whichever of its subsidiaries; or
iv. the business of the holding company and that of the auxiliary are so different that they cannot reasonably be treated as a single undertaking.
The approval of the registrar shall be utilized for not dealing in group accounts with a subsidiary on grounds (iii) or (iv).
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