Governance in brief

The headlines

Governance in brief is a summary of the latest corporate governance developments, incorporating details of the source, relevant dates and links to further information

June 2018

BEIS issues legislation to deliver key corporate governance reforms

The Companies (Miscellaneous Reporting) Regulations 2018 have been laid before Parliament. These represent the legislative strand of the Government’s package of corporate governance reforms announced by BEIS in August 2017. As expected, the regulations introduce reporting requirements in the following areas:

  • CEO pay ratios
  • Effect of future share price increases on executive pay outcomes
  • How directors have complied with section 172(1) of the Companies Act 2006
  • Corporate governance arrangements in large private and unlisted public companies

Subject to Parliamentary approval, the new requirements will apply for reporting on financial years starting on or after 1 January 2019.

The scope of companies affected by this legislation has changed from the Government’s proposed corporate governance reform package and will affect more companies than initially envisaged.

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