Appendix 1
S.I. 2008/623: memorandum from the Department
for Business, Enterprise and Regulatory Reform
Companies (Defective Accounts and Directors'
Reports) (Authorised Person) and Supervision of Accounts and Reports
(Prescribed Body) Order 2008 (S.I. 2008/623)
The Committee has asked the Department for Business,
Enterprise and Regulatory Reform for a memorandum on the following
point:
Article 7(4) continues the application of the
Supervision of Accounts and Reports (Prescribed Body) Order 2007
in respect of periodic accounts and reports relating to financial
years beginning on or after 20 January 2007. Explain why there
is no cut off point for the application of that Order in respect
of such accounts and reports.
1. There is no good reason: and the Department
would not disagree if the Committee were to conclude that it would
have been preferable had words such as "but before 6th April
2008" been inserted after "20th January 2007" in
article 7(4).
2. The Department doubts, however, whether there
will be any uncertainty caused by the absence of those words,
since it must be apparent when paragraphs (1) and (4) of article
7 are read together that the 2007 Order applies for accounts and
reports for years beginning not later than 5th April 2008 and
the 2008 Order for later years.
3. Moreover, even if there were cause for uncertainty
in that respect, articles 3 to 5 of the 2008 Order are identical
in all material respects to articles 3 to 5 of the 2007 Order,
and therefore the same result would be achieved whichever Order
were applied.
4. Accordingly, the Department does not consider
that a correcting Order needs to be made.
5. On the other hand, the Department would accept
that an appropriate amendment should be made if a suitable opportunity
were to present itself, and that a future Order revoking and replacing
the 2008 Order should contain appropriate "cut-off"
words.
Department for Business, Enterprise and Regulatory
Reform
7th April 2008
| 
