Companies Act 2014 section 316

Information on related undertakings: provision for certain information to be annexed to annual return

Section 316 allows directors to limit the disclosure of related undertaking information in the notes to statutory financial statements where the full list would be excessively long, provided the complete information is instead annexed to the company's annual return.

• Where a company has a large number of related undertakings, directors may restrict the note disclosure to those undertakings that principally affect the financial statements and those excluded from consolidation under section 303(3)
• If this exemption is used, the notes must state that only selected undertakings have been disclosed, and the full information must be annexed to the annual return
• Failure to comply with the disclosure and annexing requirements is a category 3 offence for both the company and any officer in default
• The term "officer" for this purpose includes shadow directors and de facto directors

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