When a certificate is received within the two year time limit in
ERSM61040, the Inspector should
normally acknowledge receipt of it and tell the company that the
certificate will be reviewed in due course to see whether it can be
accepted.
If the company specifically asks for confirmation that the
certificate is accepted, either when it is submitted, or on receipt
of the acknowledgement letter, the Inspector should take the
following action:
Where it is clear that there are no intra-group transactions, or
that these are only minimal, the company can be advised that, on
the basis of the information provided, the certificate is accepted
and the company is not a dependent subsidiary for that period of
account.
Most director's certificates and auditor's reports given
within the two year time limit will be acceptable. However if you
receive a certificate and a report for a period of account in a
case where it appears from the accounts that either of the two
conditions in
ERSM61030 is not satisfied, you should
submit the papers to the Technical Adviser ESSU (
ERSM10040) for advice before contending
that the subsidiary is a dependent subsidiary company for that
period of account.
Submitting a director's certificate and auditor's report within
the two year time limit in
ERSM61040 is itself one of the
conditions which must be satisfied for a subsidiary not to be a
dependent subsidiary for a period of account. It is not the same as
an election.
When a certificate is received after the expiry of the time
limit the company should be advised that the third condition (
ERSM61040) has not been satisfied. The
subsidiary is therefore a dependent subsidiary for the period of
account.
