Company law requires the directors to produce audited accounts, except for companies with a turnover below £6.5 million and assets of less than £3.26 million, which do not require an audit. The directors must also produce an annual report.
The directors must ensure that the report and accounts are circulated to the shareholders, but there is no longer a requirement to present them to the shareholders at a general meeting.
In practice, shareholder dissatisfaction with the accounts would usually reflect an underlying problem - for example, if the shareholders felt that the directors were trying to mislead them or to run the company for the directors' benefit. The shareholders might then take action (see 17).
