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Paragraph 10 Investment in associated bodies

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

Where a society, at the end of its financial year, has any associated body which is carrying on business as at the end of that financial year there shall be stated as at the end of that financial year the following particulars of the associated body:

(a)

whether it is a subsidiary, an associated body linked by resolution, or another associated body of the society;

(b)

its name;

(c)

how it is constituted;

(d)

its place of registration;

(e)

where it is a company limited by shares, the particulars of each class of its shares held, and the proportion of the nominal value of the allotted shares of that class represented by the shares held, by the society;

(f)

the nature of the business carried on by it;

(g)

the principal country of operation of the associated body; and

(h)

whether it is a direct or indirect associated body of the society.

(2)

For the purposes of this paragraph an associated body of a society is a direct associated body of the society if it is one—

(a)

in which the society holds shares or corresponding membership rights, or

(b)

to which the society is linked by resolution,

and is otherwise an indirect associated body of the society.

(3)

The particulars required by subparagraph (1) above include, with reference to the proportion of the nominal value of the allotted shares of a class represented by shares held by the society, a statement of the extent (if any) to which it consists in shares held by, or by a nominee for, a subsidiary of the society and the extent (if any) to which it consists in shares held by, or by a nominee for, the society itself.

(4)

Details required by subparagraphs (1) to (3) above need not be given in the case of an associated body which has not yet traded or had ceased to trade before the start of the financial year and had not, before its end, recommenced trading.

(5)

In respect of each associated body particulars of which are disclosed under subparagraph (1) the additional information specified in subparagraph (6) below shall be given unless—

(a)

the society prepares group accounts which include the accounts of the associated body, or

(b)

the investment of the society in the shares of the associated body is included in, or in a note to, the annual accounts by way of the equity method of valuation.

(6)

The information required by this subparagraph is the aggregate amount of the capital and reserves of the body as at the end of its relevant financial year, and its profit or loss for that year, and for this purpose the relevant financial year is—

(a)

if the financial year of the body ends with that of the society giving the information in a note to its accounts, that financial year, and

(b)

if not, the body corporate’s financial year ending last before the end of the financial year of the society giving that information.

(7)

Where an item stated in a balance sheet includes listed investments in an associated body—

(a)

the aggregate amount referable to those investments within that item shall be stated and so shall their aggregate market value, and

(b)

where the aggregate market value of those listed investments is higher than their aggregate stock exchange value, both of those aggregate values shall be stated.