Companies Act (Cap. 386), article 170

170. (1) If at the end of an accounting period a company is a parent company the directors shall, as well as preparing the individual accounts for that company, also prepare consolidated accounts. (2) A parent company and all of its subsidiary undertakings shall be undertakings to be consolidated regardless of where th e registered offices or principal offices of such subsidiary undertakings are situated. (3) A subsidiary undertaking may be excluded from consolidation if its inclusion is not material for the purpose of giving a true and fair view; but two or more subsidiary undertakings may be excluded only if their inclusion is not mat erial when taken together. (4) A subsidiary undertaking may be excluded from consolidation where - (a) severe long-term restrictions substantially hinder the exercise of the rights of the parent company over the assets or management of that undertaking; or (b) the interest of the parent company is held exclusively with a view to subsequent resale and the undertaking has not previously been included in consolidated accounts prepared by the parent company; or (c) in extremely rare cases , where the information necessary for the preparati on of consolidated accounts in accordance with the provisions of this Act cannot be obtained without disproportionate expense or undue delay. The reference in paragraph ( a) t o t h e r i g h t s o f t h e p a r e n t company and the reference in paragraph ( b) to the interest of the parent company are, respectively, to rights and interests held by or attributed to the company for the purposes of article 2(2) in t he absence of which it would not be the par ent company. (5) Where all the subsidiary und ertakings of a parent company fall within the above exclusions, no conso lidated accounts shal l be required. 114 CAP . 386.] COMP ANIES Form and content of consolidated accounts. Amended by: IV . 2003.74; IX. 2008.22; XXXI. 2015.8; XVIII.2025.19.