Companies Act 2014 section 1374

Application of section 225 to a traded company

Section 1374 extends the directors' compliance statement requirements under section 225 to traded companies, broadening the scope of "relevant obligations" to include serious transparency offences alongside market abuse and prospectus offences.

• Section 225, which requires directors to produce a compliance statement, is extended to apply to traded companies with certain modifications.
• The definition of "relevant obligations" is expanded so that directors must also address serious Market Abuse offences, serious Prospectus offences, and serious Transparency offences.
• A new definition of "serious Transparency offence" is introduced, referring to offences set out in section 1382 of the Act (indictable offences under transparency regulations for securities admitted to trading on certain markets).
• These changes mean that directors of traded companies must ensure their compliance statements cover a wider range of securities law obligations than those applicable to ordinary companies.