COMPANY ACCOUNTS

The principal regulations governing the maintenance and keeping of accounting records, accounts and audit of an Isle of Man company’s financial affairs are set out within Part 1 and Schedule 1 of the Companies Act 1982. Accounting Records It is the responsibility of the directors of a company to ensure that the accounting records are clearly able to show and explain the company’s transactions and specifically to: disclose, within a reasonable time and with reasonable accuracy, the financial position of the company at any time; and enable the directors to ensure that any balance sheet or profit and loss account prepared by them complies with the requirements of the Companies Acts 1931 to 1993. The accounting records of a company must be kept at the company’s legal/registered office or such other place as the directors’ think appropriate. Where a company’s accounting records are maintained outside the Isle of Man, accounts and returns are required, and these are to be kept at a place in the Island and be available for inspection by officers of the company. Annual Accounts The Isle of Man’s Companies Acts require the directors of a company to ensure that accounts for a company are laid before the members (shareholders) in general meeting within 18 months of a company’s incorporation and thereafter at least once in every calendar year. Where Dormant or Exempt companies elect to dispense with the appointment of an auditor, it is still a requirement that annual accounts be prepared. Every Balance Sheet of an Isle of Man company must be signed by at least two directors. Directors Report The directors of a company must provide with each Balance Sheet a report indicating: the state of the company’s affairs; the amount, if any, which they recommend should be paid by way of dividend; and the amount, if any, which they propose to carry to reserves. The Directors’ Report is also required to indicate any changes, during the financial period, in the nature of the company’s business activities.

Crossman Trust Company Limited PO Box 1, Portland House, Station Road, Ballasalla, Isle of Man, IM99 6AB, British Islands. Telephone: +44 (0)1624 825805 or 822816, Fax: +44 (0)1624 824570, E-Mail: mail@crossmantrust.com