(1) If a group financial statement is not prepared for a company, the directors of the company shall include in the notes to the company’s individual financial statement details of—
(a) advances and credits granted by the company to its directors; and
(b) guarantees of any kind entered into by the company on behalf of its directors,
(2) If a group financial statement is prepared for the companies comprising the group, the directors of the parent company concerned shall include in the notes to the group financial statement details of—
(a) advances and credits granted to the directors of the parent company by that company or by any of its subsidiary undertakings; and
(b) guarantees of any kind entered into on behalf of the directors of the parent company by that company or by any of its subsidiary undertakings,
(3) The details of an advance or credit required to be included in the notes are details of—
(a) its amount;
(b) an indication of the interest rate;
(c) its main condition; and (d) any amounts repaid.
(4) The details of a guarantee required to be included in the notes are details of—
(a) its main terms;
(b) the amount of the maximum liability that may be incurred in respect of the guarantee by the company (or its subsidiary); and
(c) any amount paid and any liability incurred by the company (or its subsidiary) for the purpose of fulfilling the guarantee (including any loss incurred of the guarantee).
(5) The directors shall also include in the notes to the relevant financial statement the totals of—
(a) amounts stated under subsection (3)(a);
(b) amounts stated under subsection (3)(d);
(c) amounts stated under subsection (4)(b); and (d) amounts stated under subsection (4)(c).
(6) In this section, a reference to the directors of a company is a reference to the persons who were directors at any time in the financial year to which the relevant financial statement relates.
(7) The requirements of this section apply in relation to every advance, credit or guarantee subsisting at any time during the financial year to which the statement relates—
(a) whenever it was entered into;
(b) whether or not the person concerned was a director of the relevant company at the time it was entered into; and
(c) in the case of an advance, credit or guarantee involving a subsidiary undertaking of that company—whether or not the undertaking was such a subsidiary undertaking at the time it was entered into.
(8) The regulations may provide that the financial statements of companies of a specified class need only state the details required by subsections (3)(a) and (4)(b).
(9) If the directors of a company fail to comply with subsection (1), (2) or(5), each director of the company who is in default commits an offence and on conviction is liable to a fine not exceeding five hundred thousand shillings.
(a) advances and credits granted by the company to its directors; and
(b) guarantees of any kind entered into by the company on behalf of its directors,
(2) If a group financial statement is prepared for the companies comprising the group, the directors of the parent company concerned shall include in the notes to the group financial statement details of—
(a) advances and credits granted to the directors of the parent company by that company or by any of its subsidiary undertakings; and
(b) guarantees of any kind entered into on behalf of the directors of the parent company by that company or by any of its subsidiary undertakings,
(3) The details of an advance or credit required to be included in the notes are details of—
(a) its amount;
(b) an indication of the interest rate;
(c) its main condition; and (d) any amounts repaid.
(4) The details of a guarantee required to be included in the notes are details of—
(a) its main terms;
(b) the amount of the maximum liability that may be incurred in respect of the guarantee by the company (or its subsidiary); and
(c) any amount paid and any liability incurred by the company (or its subsidiary) for the purpose of fulfilling the guarantee (including any loss incurred of the guarantee).
(5) The directors shall also include in the notes to the relevant financial statement the totals of—
(a) amounts stated under subsection (3)(a);
(b) amounts stated under subsection (3)(d);
(c) amounts stated under subsection (4)(b); and (d) amounts stated under subsection (4)(c).
(6) In this section, a reference to the directors of a company is a reference to the persons who were directors at any time in the financial year to which the relevant financial statement relates.
(7) The requirements of this section apply in relation to every advance, credit or guarantee subsisting at any time during the financial year to which the statement relates—
(a) whenever it was entered into;
(b) whether or not the person concerned was a director of the relevant company at the time it was entered into; and
(c) in the case of an advance, credit or guarantee involving a subsidiary undertaking of that company—whether or not the undertaking was such a subsidiary undertaking at the time it was entered into.
(8) The regulations may provide that the financial statements of companies of a specified class need only state the details required by subsections (3)(a) and (4)(b).
(9) If the directors of a company fail to comply with subsection (1), (2) or(5), each director of the company who is in default commits an offence and on conviction is liable to a fine not exceeding five hundred thousand shillings.
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