O tangled web! UK Government publishes final corporate governance reporting rules
A summary of the final new corporate governance reporting rules published on 17 July 2018.
On 17 July 2018, the government published its final new corporate governance reporting requirements which implement its well-publicised corporate governance reforms to make directors more accountable (The Companies (Miscellaneous Reporting) Regulations 2018). The final regulations are unchanged from the draft regulations published in June 2018.
The government has also published guidance on these regulations in the form of Frequently Asked Questions (FAQs).
The new requirements apply to financial years beginning on or after 01 January 2019, so reporting will effectively start in 2020 covering the previous year.
Summary
The following information will have to be included in annual reports:
- UK incorporated quoted companies with more than 250 UK employees - the ratio of the CEO’s total remuneration to the median (50th), 25th and 75th percentile of the full time equivalent remuneration of the company’s UK employees, together with certain supporting information.
- All UK incorporated quoted companies - several new disclosures which describe the effect of future share price growth on executive pay outcomes.
- Large companies - a statement which explains how the directors have complied with their duty to have regard to the matters in s.172(1)(a) to (f) Companies Act 2006 and a statement summarising (in more detail) how the directors had regard to the need to foster business relationships with suppliers, customers and others.
- UK incorporated companies with more than 250 UK employees - a summary of how directors have engaged with their employees.
- Very large private and public (unquoted) companies - a statement of which corporate governance code (if any) they have applied, how they have applied it and an explanation of any non-adherence to the code.
| Financial services companies (being those with permission under Part 4A of the Financial Services and Markets Act 2000 to carry on a regulated activity) and companies carrying on insurance market activity do not qualify as medium-sized companies and are therefore treated as large companies for these purposes. Other companies may not be treated as medium-sized by virtue of being part of an ineligible group. |
Access a detailed overview of the new rules
Is help available?
Yes. We can review your group structure and help you identify which reporting rules apply to which entities in your group. Forewarned is forearmed.
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