Contents of directors’ report: statement as to disclosure to auditors

(1) This section applies to a company unless—
(a) it is exempt for the relevant financial year from the requirements of Part XXVII with respect to the auditing of the company’s financial statement; and
(b) the directors take advantage of that exemption.
(2) The directors shall include in their report a statement that, with respect of each of the persons who was a director at the time the report was approved—
(a) there is, so far as the person is aware, no relevant audit information of which the company's auditor is unaware; and
(b) the person has taken all the steps that the person ought to have taken as a director so as to be aware of any relevant audit information and to establish that the company’s auditor is aware of that information.
(3) In subsection (2), “relevant audit information" means information needed by the company's auditor in connection with preparing the auditor’s report.
(4) If a directors’ report containing the statement required by this section is approved but the statement is false, each director of the company who—
(a) knew that the statement was false, or was reckless as to whether it was false; and
(b) failed to take reasonable steps to prevent the report from being approved, commits an offence and on conviction is liable to a fine not exceeding one million shillings or to imprisonment for a term not exceeding five years, or to both.