Accounting errors at Morrisons breach rules

MORRISONS has called a general meeting to rectify accounting errors after admitting infringing the Companies Act.

In a statement to the markets, the Bradford-based grocer said that its accounts for the two financial years starting January 30, 2012 and February 4, 2013, did not show sufficient profits to meet the requirements of the 2006 Act when paying dividends and purchasing its own shares.

The company had previously acknowledged the board had “become aware” of the problems and is now taking steps to deal with the issues.

In a statement it said: “Whilst the company has always filed its statutory accounts on time in accordance with the requirements of the Act, and at all times had sufficient profits and other distributable reserves to justify the relevant distributions, the last accounts filed at Companies House in each of the financial years in which the relevant distributions were made did not show the requisite level of distributable profits.”

Morrisons said it has published a circular convening a general meeting at which a resolution will be proposed which will, if passed, put all potentially affected parties “so far as possible in the position which they were always intended to be.”

“The resolution will, among other things, seek shareholder approval of a proposed waiver of any claims which the company may have in respect of the relevant distributions against shareholders and the company’s directors,” Morrisons said.

“As a result of the proposed waiver of claims against the company’s directors, the resolution will also seek shareholder approval of the proposed waiver under the related party transaction requirements of the listing rules of the Financial Conduct Authority.”