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New reporting requirements for large charitable companies - a reminder
- Four new governance-related reporting requirements for large private companies will be required (subject to size criteria – see full details below) in annual reports for periods commencing on or after 1 January 2019. Three of these will apply to charitable companies:
- Section 172(1) statement
- Employee engagement
- Business relationships
- Although charitable companies have been excluded from the requirement to provide the fourth element, a statement of corporate governance arrangements, there is a charity governance code available to the sector, which the largest charitable are expected to voluntarily apply.
- The reach of these new requirements is considerable and there is no exemption for subsidiary companies. Very large private companies will be undertaking most of these activities already but for companies at the lower end of the scoping criteria, more attention and effort will be required. Trustees will need to review the requirements carefully and assess where there are gaps in arrangements.
- In addition, large charitable companies, together with large private companies and LLPs will be required to disclose information about their UK greenhouse gas emissions, energy consumption and energy efficiency for periods commencing on or after 1 April 2019.