This article was first published in HR Magazine on 2 April 2019.
New Corporate Governance rules from January this year affect not just quoted companies, but companies with more than 250 employees, with an increased requirement for directors to report on employee engagement, how they have engaged with employees and had regard to employee interests including on principal company decisions, as well as reporting on CEO pay ratios for quoted companies.
Senior Associates Lisa Wallis, from our Employment Team, and Gemma Spiceley, from our Corporate Team look at the new requirements and the different obligations affecting different types of companies.
The Companies (Miscellaneous Reporting) Regulations 2018 came into force on 1 January 2019 and require qualifying UK-incorporated companies to include new content in their annual reports. According to business secretary Greg Clark, the new regulations are a “key part of the wider package of corporate governance upgrades to help build a stronger, fairer economy that works for businesses and workers”.
In addition to placing obligations on quoted companies, some of the new requirements apply to large private companies for the first time.
Employers may be unaware of these new obligations, which will require regular collation, compilation and reporting of relevant information. Company directors should familiarise themselves with the new requirements and plan ahead to ensure internal procedures are adapted in readiness for compliance.
Click here to view the full article in HR Magazine.
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