Companies Act 2014 section 1269

Disclosures by unlimited company that is a credit institution

Section 1269 extends the disclosure requirements that normally apply to public limited companies so that they also apply to unlimited companies operating as credit institutions.

• Section 1120, which deals with certain financial statement disclosure requirements, is extended beyond public limited companies to cover unlimited companies that are credit institutions.
• This means unlimited companies acting as credit institutions must comply with the same disclosure obligations as public limited companies under section 1120.
• The effect is to prevent unlimited companies from avoiding transparency requirements simply by virtue of their corporate structure when they operate as credit institutions.
• The practical result is that accountants preparing financial statements for an unlimited company that is a credit institution must ensure the same level of disclosure as would be required for a public limited company.