# The Companies Act 1985 (Directors' Report) (Statement of Payment Practice) Regulations 1997, Note: Explanatory note


(This note does not form part of the Regulations)
These Regulations amend section 234 of the Companies Act 1985 (c. 6) (“the 1985 Act”) and Part VI of Schedule 7 to the 1985 Act.
The Regulations substitute for Part VI of Schedule 7 to the 1985 Act, with consequential amendments to section 234, a new Part set out in regulation 2(2). The new Part VI provides that the directors' report of public companies and large private companies which are subsidiaries of a public company must contain a statement of the company’s policy and practice on payment of its suppliers.
The new Part VI restates the existing provisions of Part VI (statement of the company’s policy on payment of its suppliers) and adds a new requirement to state the company’s practice on payment of its suppliers. The directors' report must state the figure, expressed in days, which bears the same proportion to the number of days in the year as the amount owed to trade creditors at the year end bears to the amounts invoiced by suppliers during the year.
The Regulations will not apply to annual accounts and annual reports prepared and delivered to the registrar of companies in respect of financial years ending on or before 24th March 1997.

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Source: https://www.legislation.gov.uk/uksi/1997/571/note (the official version)
Page: https://openlegislation.uk/companies-act-1985-directors-report-statement-of-payment-practice-regulations-1997/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.