Question
Is a director’s report mandatory for a small company?
Answer
Bottom line: Yes — every company must attach a Board's report to its financial statements, but a small company files an abridged one.
1. The rule
Section 134 requires a Board's or Director's Report with the financial statements, whatever the company's size.
2. Small company and OPC
They prepare an abridged Board's report under Rule 8A, with reduced disclosures.
3. Filing
It is filed with the ROC as part of the annual accounts.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.