The Companies Act 1985 (Bank Accounts) Regulations 1991

• and by the: insertion of the following words at the appropriate place in the entry relating to “land of freehold tenure and land of leasehold tenure” : – in Schedule 9paragraph 86 of Part I of that Schedule ; insertion of the following words at the appropriate place in the entry relating to “lease, long lease and short lease”: – in Schedule 9paragraph 82 of Part I of that Schedule ; insertion of the following words at the appropriate place in the entry relating to “provision”: – in Schedule 9paragraph 85 of Part I of that Schedule .

4

Parts I and II of Schedule 9 to the 1985 Act, formed into a new Schedule by Regulation 5 of these Regulations and numbered Schedule 9A, shall be amended as follows:

• (a) in paragraph 17(2) of Part I, the words from “except in so far as” to the end shall be omitted;

• (b) paragraph 27 of Part I is repealed;

• (c) in paragraph 28A[^f00010] of Part I, the words “27 or” shall be omitted;

• (d) the words “Banking or” shall be omitted from the heading to Part II;

• (e) the following shall be substituted for paragraph 1 of Part II:

(1) An undertaking (other than one carrying on insurance business) whose activities are a direct extension of or ancillary to insurance business shall not be excluded from consolidation under section 229(4) (exclusion of undertakings whose activities are different from those of the undertakings consolidated).

• (f) in paragraph 5 of Part II, the word “an” shall be substituted for the words “a banking or” in sub-paragraph (1) and the words “27 or” in that sub-paragraph and “27(4)” in subparagraph (2) shall be omitted; and

• (g) paragraph 6 of Part II is repealed.

5

Schedule 10 to the 1985 Act (Directors' Report where Accounts Prepared in Accordance with Special Provisions for Banking or Insurance Companies or Groups)[^f00011] shall be amended as follows:

• (a) the words “banking or” shall be omitted from the heading to the Schedule and also from paragraphs 1(1), 2(1) and 3(1) where they occur; and

• (b) the words “(other than banking …Schedule 9)” in paragraph 2(2) shall be omitted.

SCHEDULE 3 — (CONSEQUENTIAL) AMENDMENTS OF THE COMPANIES ACT 1985

1

• (1) Schedule 11 (Modifications of Part VIII where Company’s Accounts Prepared in Accordance with Special Provisions for Banking or Insurance Companies)[^f00012] to the 1985 Act is amended as follows.

• (2) The following paragraphs are inserted before paragraph 1 of the Schedule:

(1) Paragraphs 2 to 6 below apply where a company has prepared accounts in accordance with the special provisions of Part VII relating to banking companies and paragraphs 7 to 13 below apply where a company has prepared accounts in accordance with the special provisions of Part VII relating to insurance companies. Modifications where accounts prepared in accordance with special provisions for banking companies (2) Section 264(2) shall apply as if the reference to paragraph 89 of Schedule 4 therein was a reference to paragraph 85(c) of Part I of Schedule 9. (3) Section 269 shall apply as if: (a) there were substituted for the words “are shown as an asset” in sub-section (1) the words “are included as an asset”; and (b) the reference to paragraph 20 of Schedule 4 in sub-section (2)(b) was to paragraph 27 of Part I of Schedule 9. (4) Sections 270(2) and 275 shall apply as if the references therein to paragraphs 88 and 89 of Schedule 4 were to paragraph 85 of Part I of Schedule 9. (5) Sections 272 and 273 shall apply as if in section 272(3) there were substituted, for the references to section 226 and Schedule 4, references to section 255 and Part I of Schedule 9. (6) Section 276 shall apply as if the references to paragraphs 12(a) and 34(3)(a) (d) of Schedule 4 were to paragraphs 19(a) and 44(3)(a)[^f00013] of Schedule 9.

• (3) The present paragraphs 1 to 7 shall be renumbered 7 to 13, shall be preceded by the heading

and shall be amended as follows:

• (a) the words “Schedule 9A” shall be substituted for the words “Schedule 9” wherever they occur; and

• (b) the words “27 or” shall be omitted in present paragraphs 5(a) and 6(b).

2

In Schedule 22 (provisions applying to unregistered companies), in the entry relating to Part VII, in column 1, for “Schedules 4 to 8” substitute “Schedules 4 to 9” and for “Schedule 9” substitute “Schedule 9A”.

Signed

John Redwood — Minister of State for Corporate Affairs, — 1st December 1991

Explanatory note

(This note is not part of the Regulations)

1 These Regulations implement Council Directive 86/635/EEC Official Journal N.O. L372 of 31.12.1986, pages 1–17 on the Annual Accounts and Consolidated Accounts of Banks and Other Financial Institutions, in so far as that Directive is applicable to bodies corporate to which Part VII of the Companies Act l985 (“the l985 Act”) applies.

2 The Regulations firstly amend Schedule 9 to the l985 Act, which makes special provision for the accounts of banking and insurance companies and groups. The existing Parts I and II of that Schedule are formed by the Regulations into a new Schedule 9A (Regulation 5(l)) and confined in their operation to insurance companies and groups. The existing Part III of Schedule 9 is repealed (Regulation 5(2)). New Parts I to III are inserted into Schedule 9 by Regulation 5(4) and are set out in Parts I to III of Schedule 1 to the Regulations. The new Part I lays down rules governing the content of the individual accounts of banking companies, including prescribed formats to be followed, the valuation rules to be applied and the disclosures to be made in the notes to the accounts. The new Part II adapts the general rules of Part VII of the l985 Act with respect to the consolidated accounts of a company to the special circumstances of banking groups. The new Part III makes special provision with respect to the disclosures required of banking companies and the parent companies of banking groups in respect of undertakings in which they, or members of their group of companies, have invested.

3 Regulation 3 substitutes new sections 255 to 255B for the existing sections of those numbers in Part VII of the 1985 Act. These sections introduce the new provisions of Schedule 9 and the new Schedule 9A. Inter alia , they define which companies are to prepare group accounts under the special provisions with respect to banking groups.

4 Regulation 4 also amends section 255C of the 1985 Act, which sets out special rules on the content of the directors' report and presently applies to banking and insurance companies and groups, so that for the future it will only apply to insurance companies and groups.

5 Regulations 6 to 8 make further and consequential amendments.

6 Regulation 9 sets out a transitional provision whereby a company may prepare accounts in accordance with the unamended Part VII, as that Part applies to banking companies and groups, rather than under the amended provisions for a financial year commencing prior to 23rd December 1992.

Footnotes

[^f00001]: 1985 c. 6; section 257 was inserted by section 20 of the Companies Act 1989 (1989 c. 40).

[^f00002]: Sections 255 to 255B were inserted into the 1985 Act by section 18(1) of the 1989 Act.

[^f00003]: Section 255C was inserted into the 1985 Act by section 18(1) of the 1989 Act.

[^f00004]: Schedule 9 to the 1985 Act has been amended by the Financial Services Act 1986 (c. 60) and by section 18 of, and Schedule 7 to, the 1989 Act.

[^f00005]: 1967 c. 29.

[^f00006]: 1987 c. 22.

[^f00007]: Section 254(3) was inserted into the 1985 Act by section 17 of the 1989 Act.

[^f00008]: Section 260 was inserted into the 1985 Act by section 22 of the 1989 Act.

[^f00009]: Section 262A was inserted into the 1985 Act by section 22 of the 1989 Act.

[^f00010]: Paragraph 28A was inserted into Schedule 9 to the 1985 Act by section 18 of, and paragraph 10 of Part I of Schedule 7 to, the 1989 Act.

[^f00011]: A new Schedule 10 to the 1985 Act was substituted by section 18(5) of, and Schedule 8 to, the 1989 Act.

[^f00012]: Schedule 11 to the 1985 Act has been amended by paragraph 21 of Schedule 10 to, and section 23 of, the 1989 Act.

[^f00013]: Reference inserted by section 23 of, and paragraph 7 of Schedule 10 to, the 1989 Act.