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Section 648 of The Companies Act No. 17 of 2015: 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 regulations under section 647 is such that compliance with that provision would result in information of excessive length being provided in notes to the company's annual financial statement.
(2) If this section applies, the directors of the company are required to provide the information only in respect of—
(a) the undertakings whose results or financial position, in the opinion of the directors, principally affected the figures shown in the company's annual financial statement; and
(b) if the company prepares a group financial statement—undertakings excluded from the consolidation in accordance with section 644(3).
(3) If the directors of the company take advantage of subsection (2), they shall—
(a) include the notes to the company's annual financial statement a statement that the information is provided only with respect to such undertakings as are referred to in that subsection; and
(b) ensure that the full information (both that which is disclosed in the notes to the statement and that which is not) is annexed to the company's next annual return.
(4) In subsection (3), "next annual return" means that next return lodged with the Registrar after a copy of the relevant financial statement is lodged with the Registrar after the statement has been approved under section 652.
(5) If the directors of a company fail to comply with subsection (3)(b), each director of the company who is in default commits an offence and on conviction is liable to a fine not exceeding two hundred thousand shillings.
(6) If, after a director is convicted of having committed an offence under subsection (5), the directors continue to fail to comply with the relevant requirement, each director of the company who is in default commits an offence on each day on which the failure continues and on conviction is liable to a fine not exceeding twenty thousand shillings for each such offence.

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Disclaimer: This document is not to be taken as legal advise.

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