Explanatory note

These Regulations make changes to the reporting requirements in the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (the “2008 Regulations”) to require large companies to report information about their payment practices and performance within Directors’ Reports. These Regulations extend to the whole of the United Kingdom reflecting the extent of the Companies Act 2006 (the “2006 Act”).

Regulation 4 amends regulation 14 of the 2008 Regulations to provide that these new provisions will be subject to a review by the Secretary of State every 5 years.

Regulation 5 inserts a new Part 9 of Schedule 7 to the 2008 Regulations to provide new requirements on large companies to make statements in the directors’ report concerning the company’s payment practices and performance by them.

An full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.