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
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Contacts:
BIS Press Office
NDS.BIS@coi.gsi.gov.uk
Joe Upton
Phone: 020 7215 5959
Joe.Upton@bis.gsi.gov.uk