Paragraph 23 F1

(1)

The directors’ report for a company’s first financial year must include a statement of its corporate governance arrangements in accordance with paragraph 26 if the qualifying conditions are met in that year.

(2)

In relation to any subsequent financial year, the directors’ report must include a statement of the company’s corporate governance arrangements—

(a)

if the qualifying conditions are met in that year and were also met in relation to the preceding financial year;

(b)

if—

(i)

the qualifying conditions are met in that year, and

(ii)

the directors’ report was required to provide a statement of the company’s corporate governance arrangements in relation to the preceding financial year, or

(c)

if—

(i)

the qualifying conditions were met in the preceding financial year, and

(ii)

the directors’ report was required to provide a statement of the company’s corporate governance arrangements in relation to the preceding financial year.

(3)

The qualifying conditions are met by a company in a year in which it satisfies either or both of the following requirements—

(a)

it has more than 2000 employees;

(b)

it has—

(i)

a turnover of more than £200 million, and

(ii)

a balance sheet total of more than £2 billion.

Annotations

Textual amendments

F1: Sch. 7 Pt. 8 inserted (with application in accordance with reg. 1(4) of the amending S.I.) by The Companies (Miscellaneous Reporting) Regulations 2018 (S.I. 2018/860), regs. 1(1), 14