Corporate governance reforms – reporting regulations updatePrint publication
Secondary legislation setting out new reporting requirements come into force on 1 January 2019.
As reported in our June addition of Corporate Matters the draft Companies (Miscellaneous Reporting) Regulations 2018 (Regulations) were laid before Parliament in June introducing new company reporting requirements on executive pay, corporate governance arrangements, and how directors are having regard to the matters in section 172 of the Companies Act 2006. The Regulations are now made and come into force on 1 January 2019 applying to financial years beginning on or after that date.
The Regulations require:
- additional reporting on a company’s engagement with its employees, suppliers and customers to provide further explanation on how the directors have complied with their duties under section 172 of the Companies Act 2006
- large private companies to provide a statement of corporate governance arrangements
- the annual statement of the remuneration committee to include a summary of any discretion exercised by the committee in relation to the award of directors’ remuneration
- companies quoted on the official list to report how much of a director’s pay is attributable to share growth
- companies quoted on the official list to report pay ratio information.
There are only a few months left before the first of the government reforms to corporate governance come into force. The team at Walker Morris can help if you are unclear as to how these changes will affect your corporate governance arrangements.