Section 396 CAMA 2020
Section 396 Companies and Allied Matters Act is about Modified individual financial statements. Sixth Schedule. It is under Chapter 14 (Financial statements, audit and accounting records) of the Act.
(1) The directors of a company may (subject to section 397 where the company has subsidiaries) deliver individual financial statements modified as for a small company in the cases specified in subsections (2) and (3), and Part 1 of the Sixth Schedule apply with respect to the delivery of financial statements so modified.
(2) In respect of the company’s first year the directors may deliver financial statements modified as for a small company, if in that year it qualifies as small.
(3) The directors may in respect of a company’s year subsequent to the first deliver financial statements modified as for a small company,—
(a) if the company qualifies as small and it also so qualified in the preceding year ;
(b) although not qualifying in that year as small, if in the preceding year it so qualified and the directors were entitled to deliver financial statements so modified in respect of that year ; or
(c) if, in that year the company qualifies as small and the directors were entitled under paragraph (b) to deliver financial statements so modified for the preceding year (although the company did not in that year qualify as small).
