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Recently announced delays to the implementation of the Companies Act in the UK will not alter the timetable for listed companies to produce annual forward-looking business reviews that cover social and environmental matters.
The government announced last month that it has put back implementation of parts of the Act because Companies House is not yet ready to examine and store the information that companies will have to submit.
However, this will not affect section 417 of the Act, which requires listed companies to produce business reviews that must include consideration of environmental matters, employees, social and community issues, and information on suppliers ‘to the extent necessary for an understanding of the development, performance or position of the company’s business’. That requirement came into effect in October, as did provisions in section 172 that require directors to take into account the interests of employees, suppliers and customers – as well as the impact of the company’s operations on the community and the environment – when making decisions.
Many listed companies have begun preparing annual business reviews, but there is as yet no official guidance on what they should look like.
The government announced last month that it has put back implementation of parts of the Act because Companies House is not yet ready to examine and store the information that companies will have to submit.
However, this will not affect section 417 of the Act, which requires listed companies to produce business reviews that must include consideration of environmental matters, employees, social and community issues, and information on suppliers ‘to the extent necessary for an understanding of the development, performance or position of the company’s business’. That requirement came into effect in October, as did provisions in section 172 that require directors to take into account the interests of employees, suppliers and customers – as well as the impact of the company’s operations on the community and the environment – when making decisions.
Many listed companies have begun preparing annual business reviews, but there is as yet no official guidance on what they should look like.
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