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Department for Business, Innovation and Skills
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Government moves to drive up corporate narrative reporting standards
The Government has today launched a consultation on how best to ensure that corporate narrative reporting consistently provides clear, coherent and relevant information - enabling a good understanding of the performance and prospects of a business.
Launching the consultation Business Minister Edward Davey said:
“Effective corporate governance is crucial to the long term success of UK companies and the wider economy. We have a good track record in this area, but there are still some important issues we need to address – to empower shareholders, without adding to the burden of regulation.
“I want corporate narrative reporting to tell the company’s story in a balanced and coherent way. It should give shareholders the information they need, so they can hold directors to account and be effective stewards for the business. It’s also a way of encouraging companies to focus on the issues which really matter to their long-term success.”
The consultation has three objectives: driving up the quality of narrative reporting, including on social and environmental issues, to the standard of the best; empowering shareholders and achieving greater coherence in company reporting requirements without increasing the regulatory burden on business.
The consultation is inviting views on all options, non- regulatory as well as regulatory to achieve these objectives.
It also explores issues relating to remuneration disclosures- in particular whether company reports currently provide sufficiently clear and useable information about directors pay.
The consultation will run for 11 weeks, and the Government intends to publish the outcome of the consultation and proposals by the end of the year.
Notes to Editors
The consultation document can be viewed here http://www.bis.gov.uk/Consultations/the-future-of-narrative-reporting-a-consultationThe consultation takes forward the Coalition Agreement commitment to “reinstate an Operating and Financial Review to ensure that directors’ social and environmental duties have to be covered in company reporting and to investigate further ways of improving corporate accountability and transparency.”For further information, contact Joe Upton on 020 7215 5969 or joe.upton@bis.gsi.gov.ukBIS' online newsroom contains the latest press notices, speeches, as well as video and images for download. It also features an up to date list of BIS press office contacts. See http://www.bis.gov.uk/newsroom for more information.
Contacts:
BIS Press Office
NDS.BIS@coi.gsi.gov.uk
Joe Upton
Phone: 020 7215 5959
Joe.Upton@bis.gsi.gov.uk
