Section 632 of The Companies Act No. 17 of 2015: How company’s financial year is to be determined
(1) A financial year of a company is determined in accordance with this section.
(2) A company’s first financial year—
(a) begins with the first day of its first accounting reference period; and
(b) ends with the last day of that period or such other date (not more than seven days before or after the end of that period) as the directors may determine;
(3) Subsequent financial years of a company—
(a) begin with the day immediately following the end of the previous financial year of the company; and
(b) end with the last day of its next accounting reference period or such other day, not more than seven days before or after the end of that period, as the directors may determine.
(4) The directors of a parent company shall ensure that, except when in their opinion there are good reasons to the contrary, the financial year of each of its subsidiary undertakings coincides with the financial year of the parent company.
(5) If the directors fail to comply with subsection (4), each of the directors whirs in default commits an offence and on conviction is liable to a fine not exceeding five hundred thousand shillings.
(6) If, after a director has been convicted of an offence under subsection (5), the directors continue to fail to comply with subsection (4), each of the directors who is in default commits a further offence on each day on which the failure continues and on conviction is liable to a fine not exceeding fifty thousand shillings for each such offence.
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- Section 633 - How accounting reference periods and accounting reference date of company are determined
(1) The accounting reference periods of a company are determined accordingto its accounting reference date in each calendar year.
(2) Unless otherwise prescribed in the articles or by any law, the...
- Section 634 - Power of company to change its accounting reference date
(1) A company may, by notice lodged with the Registrar for registration, change its accounting reference date having effect in relation to—
(a) the current accounting reference period of the company...
- Section 635 - Duty of directors to prepare individual financial statement
(1) The directors of every company shall prepare a financial statement for thecompany for each of financial year of the company.
(2) Such a financial statement is referred to in this Part as the...
- Section 636 - Financial statements to give true and fair view
(1) The directors of a company may approve a financial statement for thepurposes of this Division only if they are satisfied that the statement gives a true and fair view of the assets, liabilities...
- Section 637 - Accounting framework applicable to individual financial statements
(1) The directors of a company shall prepare the company’s individual afinancial statement in accordance with section 638.
(2) Subsection (1) is subject to section 645.
(3) If the directors of a...
- Section 638 - Requirements for individual financial statements
(1) In preparing an individual financial statement for a financial year, the directors of a company shall ensure that the statement complies with the requirements of this section.
(2) The...
- Section 639 - Company that is not a small company to prepare group financial statement
(1) If, at the end of a financial year, a company that is not subject to the smallcompanies regime is a parent company, the directors of the company shall, in addition to preparing an individual...
- Section 640 - Exemption for company included in group financial statement of larger group
(1) A company that is itself a subsidiary undertaking is exempt from the requirement to prepare a group financial statement in the following cases—
(a) if the company is a wholly-owned subsidiary of...
- Section 641 - Exemption if no subsidiary undertakings need to be included in consolidation
A parent company is exempt from the requirement to prepare a group financial statement if under section 644 all of its subsidiary undertakings could be excluded from consolidation in a group financial...
- Section 642 - Group financial statements: applicable accounting framework
(1) If a group financial statement is required to be prepared, the directors of the parent company shall prepare the statement in accordance with section 643.
(2) If the directors of the parent...
- Section 643 - Requirements for group financial statements
(1) In preparing a group individual financial statement for a financial year, the directors of the parent company concerned shall ensure that the statement complies with the requirements of this...
- Section 644 - Group financial statements: subsidiary undertakings to be included in consolidation
(1) In preparing a group financial statement, the directors of the parent company shall include in the consolidation all of the subsidiary undertakings of the company, subject to the exceptions...
- Section 645 - Directors of parent company to ensure consistency of financial reporting within group
(1) The directors of a parent company shall ensure that the individual financialstatements of—
(a) the parent company; and
(b) each of its subsidiary undertakings, are all prepared using the same...
- Section 646 - Certain information may be omitted from individual profit and loss account when group financial statement is prepared
(1) If—
(a) a company prepares a group financial statement in accordance with this Act; and
(b) the notes to the company's individual balance sheet show the company's profit or loss for the...
- Section 647 - Information about related undertakings to be provided in notes tofinancial statements
(1) The regulations may require information about related undertakings to be provided in notes to a company’s annual financial statement.
(2) Those regulations—
(a) may make different provision...
- Section 648 - Information about related undertakings: alternative compliance
(1) This section applies when the directors of a company are of the opinion that the number of undertakings in respect of which the company is required to disclose information under any provision of...
- Section 649 - Information about employee numbers and costs to be included in company’s annual financial statement
(1) If a company is not subject to the small companies regime, the directors of the company shall include in notes to the company’s annual financial statement the following information about the...
- Section 650 - Directors to include in notes to company's annual financial statement details of their benefits other than remuneration
(1) Except in the case of a company that is subject to the small companies regime, the directors of a company shall include in the notes to the company's individual financial statement details of the...
- Section 651 - Information about directors’ benefits to be included in notes to company’s individual financial statement
(1) If a group financial statement is not prepared for a company, the directors of the company shall include in the notes to the company’s individual financial statement details of—
(a) advances and...
- Section 652 - Directors to approve and sign financial statements
(1) As soon as practicable after a company’s annual financial statement hasbeen prepared, the directors shall approve the statement and arrange for one or more of them to sign it.
(2) The directors...
- Section 653 - Duty to prepare directors’ report
(1) The directors of a company shall prepare a directors’ report for eachfinancial year of the company.
(2) For a financial year in which—
(a) the company is a parent company; and
(b) the directors...
- Section 654 - General requirements for contents of directors’ report
(1) The directors shall include in their report for a financial year—
(a) the names of the persons who, at any time during the financial year, were directors of the company; and
(b) the principal...
- Section 655 - Business review to be included in certain directors’ reports
(1) Unless the company is subject to the small companies regime, the directors shall include in their report a business review that complies with subsection (3), so far as relevant to the...
- Section 656 - When business review not required
(1) Section 655 does not require the disclosure of information about impendingdevelopments or matters in the course of negotiation if the disclosure would, in the opinion of the directors,...
- Section 657 - Contents of directors’ report: statement as to disclosure to auditors
(1) This section applies to a company unless—
(a) it is exempt for the relevant financial year from the requirements of Part XXVII with respect to the auditing of the company’s financial statement;...
- Section 658 - Directors to approve and sign directors’ report
(1) As soon as practicable after the directors have finished preparing their annual report for the company, they shall approve the report and arrange for one of them or the secretary of the company to...
- Section 659 - Duty of directors of quoted company to prepare directors’ remuneration report
(1) The directors of a quoted company shall prepare a directors’ remuneration report for each financial year of the company.
(2) If subsection (1) is not complied with for a financial year, each...
- Section 660 - Regulations may prescribe requirements for contents of directors' remuneration report
(1) The regulations may prescribe—
(a) the information that is required to be included in a directors’ remuneration report;
(b) how information is to be set out in the report; and (c) what is to be...
- Section 661 - Directors to approve and sign directors’ remuneration report
(1) As soon as practicable after the directors have finished preparing thedirectors’ remuneration report, the directors shall approve the report and shall arrange for one of them or the secretary of...
- Section 662 - Company’s duty to circulate copies of annual financial statement and reports
(1) Every company shall send a copy of its annual financial statement andreports for each financial year to—
(a) every member of the company;
(b) every holder of the company’s debentures;...
- Section 663 - Deadline for sending out copies of annual financial statement and reports
(1) A private company shall comply with section 662 not later than—
(a) the deadline for lodging a financial statement and directors' report with the Registrar; or
(b) if earlier— the date on which...
- Section 664 - Offence to fail to send out copies of financial statements and reports
(1) If a company fails to comply with section 662 or 663, the company, and eachofficer of the company who is in default, commit an offence and on conviction are each liable to a fine not exceeding one...
- Section 665 - Option to provide summary financial statement
(1) A company may, in such circumstances as may be prescribed by the regulations for the purposes of this section, send to its members a summary financial statement instead of the copy of the...
- Section 666 - Duty of company to send financial statement to persons entitled
(1) The company shall send copies of the financial statement and reports to anyperson entitled to receive them in accordance with section 662 and who wishes to receive them.
(2) A company that...
- Section 667 - Form and contents requirements for summary financial statements of unquoted companies
(1) If a company that is not a quoted company exercises the option to provide a summary financial statement, it shall ensure that the statement— (a) is derived from the company’s annual financial...
- Section 668 - Form and contents requirements for summary financial statements of quoted companies
(1) If a quoted company exercises the option to provide a summary financial statement, it shall ensure that the statement—
(a) is derived from the company’s annual financial statement and the...
- Section 669 - Offences relating to summary financial statements
(1) If a company fails to comply with a requirement of section 666, 667 or 668,the company, and each officer of the company who is in default, commit an offence and on conviction are each liable to a...
- Section 670 - Quoted company to make annual financial statement available on company's website
(1) A quoted company shall ensure that its annual financial statement anddirectors’ report—
(a) is made available on a website that complies with section 672; and
(b) remains available on the...
- Section 671 - Quoted company to make preliminary statement of results available on company’s website
(1) If a quoted company prepares a preliminary statement of its annual results in accordance with the requirements of listing rules or comparable requirements of the market on which the company’s...
- Section 672 - Requirements as to website availability
(1) For the purposes of sections 670 and 671, a website complies with this section if it—
(a) is maintained by or on behalf of the company;
(b) identifies the company; and
(c) access to the...
- Section 673 - Right of member or debenture holder of unquoted company to copies of company's financial statements and directors’ reports
(1) A member, or holder of debentures, of an unquoted company is entitled to be provided, on demand and without charge, with a copy of— (a) the last annual financial statement of the company;
(b) the...
- Section 674 - Right of member or debenture holder of quoted company to copies of company's financial statement and reports
(1) A member of, or holder of debentures of, a quoted company is entitled to be provided, on demand and without charge, with a copy of— (a) the company's most recent annual financial...
- Section 675 - Name of signatory to be stated in published copies of annual financial statement and reports, etc
(1) A company that publishes a document to which this section applies shall ensure that the document states the name of the person who signed it on behalf of the directors.
(2) In the case of an...
- Section 676 - Requirements in connection with publication of statutory financial statement
(1) When publishing its statutory financial statement, a company shall enclosewith or annex to the statement a copy of the auditor’s report on that financial statement, unless the company is exempt...
- Section 677 - Requirements in connection with publication of non-statutory financial statement
(1) If a company publishes a non–statutory financial statement, it shall publish with it a statement indicating—
(a) that it is not the company's statutory financial statement;
(b) whether a...
- Section 678 - Meaning of “publication” in relation to company’s financial statement and reports
For the purposes of sections 675, 676 and 677, a company is taken to have published a financial statement or directors’ report if it publishes, issues or circulates it or otherwise makes it available...
- Section 679 - Public company to present annual financial statement and reports at general meeting of company
(1) The directors of a public company shall present to the members at a generalmeeting of the copies of its annual financial statement and directors’ and other reports.
(2) The directors shall comply...
- Section 680 - Offence for public company to fail to present annual financial statement and reports at general meeting of company
(1) If the requirements of section 679 are not complied with before the end ofthe specified period, every person who immediately before the end of that period was a director of the company commits an...
- Section 681 - Directors of quoted company required to obtain members' approval of directors' remuneration report
(1) The directors of a quoted company shall, before the general meeting at which the financial statement is to be presented, give to the members of the company entitled to be sent notice of the...
- Section 682 - Offence for directors of quoted company to fail to comply with section694
(1) If the directors of a quoted company fail to comply with section 681(1), eachof the directors who is in default, commit an offence and on conviction are each liable to a fine not exceeding five...