The Companies Act No. 17 of 2015Section 632 of The Companies Act No. 17 of 2015: How company’s financial year is to be determined
(1) A financial year of a company is determined in accordance with this section.
(2) A company’s first financial year—
(a) begins with the first day of its first accounting reference period; and
(b) ends with the last day of that period or such other date (not more than seven days before or after the end of that period) as the directors may determine;
(3) Subsequent financial years of a company—
(a) begin with the day immediately following the end of the previous financial year of the company; and
(b) end with the last day of its next accounting reference period or such other day, not more than seven days before or after the end of that period, as the directors may determine.
(4) The directors of a parent company shall ensure that, except when in their opinion there are good reasons to the contrary, the financial year of each of its subsidiary undertakings coincides with the financial year of the parent company.
(5) If the directors fail to comply with subsection (4), each of the directors whirs in default commits an offence and on conviction is liable to a fine not exceeding five hundred thousand shillings.
(6) If, after a director has been convicted of an offence under subsection (5), the directors continue to fail to comply with subsection (4), each of the directors who is in default commits a further offence on each day on which the failure continues and on conviction is liable to a fine not exceeding fifty thousand shillings for each such offence.
Check the current authoritative text and amendment history before relying on this provision.
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