(1) Subject to subsection (5), subsection (3) applies to a company in respect of its statutory financial statements for a financial year if the directors of the company are of the opinion that the company will satisfy the condition specified in subsection (2) in respect of that year and decide that the company should avail itself of subsection (3) in that year (and that decision is recorded by the directors in the minutes of the meeting concerned).
(2) The condition mentioned in subsection (1) is that in respect of the year concerned the company is dormant that is to say, during that year -
(a) it has no significant accounting transaction, and
(b) its assets and liabilities comprise only permitted assets and liabilities.
(3) The following provisions (the "dormant company audit exemption") have effect where, by virtue of the preceding subsections, this subsection applies in respect of the statutory financial statements of a company for a particular financial year -
(a) without prejudice
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