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Section 465: Companies qualifying as medium-sized: general

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

Part 15: Accounts and reports — Chapter 12: Supplementary provisions

A company qualifies as medium-sized in relation to its first financial year if the qualifying conditions are met in that year.

A company qualifies as medium-sized in relation to a subsequent financial year—

if the qualifying conditions are met in that year and the preceding financial year;
if the qualifying conditions are met in that year and the company qualified as medium-sized in relation to the preceding financial year;
if the qualifying conditions were met in the preceding financial year and the company qualified as medium-sized in relation to that year.

The qualifying conditions are met by a company in a year in which it satisfies two or more of the following requirements—

For a period that is a company's financial year but not in fact a year the maximum figures for turnover must be proportionately adjusted.

The balance sheet total means the aggregate of the amounts shown as assets in the company's balance sheet.

The number of employees means the average number of persons employed by the company in the year, determined as follows—

find for each month in the financial year the number of persons employed under contracts of service by the company in that month (whether throughout the month or not),
add together the monthly totals, and
divide by the number of months in the financial year.

This section is subject to section 466 (companies qualifying as medium-sized: parent companies).

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This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.