Companies Act 2014 section 493

Division financial statement

Section 493 sets out when a company involved in a division must prepare a division financial statement and prescribes how that statement must be drawn up.

• A division financial statement is required where a company's latest statutory accounts are more than six months old at the date of the common draft terms of division and the company is using the exemption from holding a general meeting under section 496(6).
• The statement must follow the format of the company's last annual balance sheet, comply with Part 6, and be dated no earlier than the first day of the third month before the common draft terms of division.
• Valuations from the last balance sheet may only be altered to reflect accounting entries, but interim depreciation, provisions, and material changes in actual value not recorded in the books must also be taken into account.
• The requirement to prepare a division financial statement can be disapplied if all voting shareholders — and, where relevant, all holders of securities whose consent is needed for votes to take effect — unanimously agree to waive it.