Companies Act 2014 section 225

Directors' compliance statement and related statement

Section 225 requires directors of larger companies to include a compliance statement in their directors' report, acknowledging responsibility for the company's compliance with company law and tax law obligations, and confirming that appropriate compliance policies and procedures are in place.

• Directors of companies with a balance sheet total exceeding €12,500,000 and turnover exceeding €25,000,000 must include a compliance statement in their directors' report
• The statement must acknowledge directors' responsibility for compliance with relevant company law obligations (where breach would be a serious offence) and all tax law obligations
• Directors must confirm they have drawn up a compliance policy statement, put in place arrangements to secure material compliance, and reviewed those arrangements during the financial year — or explain why any of these steps have not been taken
• Failure to produce the required compliance statement is a category 3 offence, though certain classes of company (such as section 110 qualifying companies) may be exempted by ministerial regulation

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