(1) The directors of a company must prepare a directors' report for each financial year of the company.
(1A) Subsection (1) does not apply if the company qualifies as a micro-entity (see sections 384A and 384B).
(2) For a financial year in which -
(a) the company is a parent company, and
(b) the directors of the company prepare group accounts,
the directors' report must be a consolidated report (a "group directors' report") relating to the undertakings included in the consolidation.
(3) A group directors' report may, where appropriate, give greater emphasis to the matters that are significant to the undertakings included in the consolidation, taken as a whole.
(4) In the case of failure to comply with the requirement to prepare a directors' report, an offence is committed by every person who -
(a) was a director of the company immediately before the end of the period for filing accounts and reports for the financial year in question, and
(b) failed to take all reasonable steps for secu
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