Section 394C: Dormant subsidiaries exemption: parent undertaking declaration of guarantee

Companies Act 2006 · 2006 c. 46View on legislation.gov.uk

Part 15: Accounts and reports — Chapter 4: Annual accounts

A guarantee is given by a parent undertaking under this section when the directors of the subsidiary company deliver to the registrar a statement by the parent undertaking that it guarantees the subsidiary company under this section.

The statement under subsection (1) must be authenticated by the parent undertaking and must specify—

the name of the parent undertaking,
the registered number (if any) of the parent undertaking,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
the name and registered number of the subsidiary company in respect of which the guarantee is being given,
the date of the statement, and
the financial year to which the guarantee relates.

A guarantee given under this section has the effect that—

the parent undertaking guarantees all outstanding liabilities to which the subsidiary company is subject at the end of the financial year to which the guarantee relates, until they are satisfied in full, and
the guarantee is enforceable against the parent undertaking by any person to whom the subsidiary company is liable in respect of those liabilities.

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