Companies Act 2014 section 1219

Qualification of section 338 in the case of a CLG

Section 1219 modifies the rules on circulating statutory financial statements for companies limited by guarantee (CLGs), restricting the obligation to send copies only to persons entitled to receive notices of general meetings.

• Section 338, which requires circulation of statutory financial statements, applies to CLGs but with important modifications.
• For ordinary companies, copies of statutory financial statements must be sent to members and debenture holders regardless of whether they are entitled to receive notices of general meetings.
• For CLGs, this obligation is narrowed so that copies need only be sent to members and debenture holders who are entitled to receive notices of general meetings.
• This recognises that CLGs may have a broader membership base, and limits the circulation requirement to those actively engaged in the company's governance.