Companies Act 2006

Trade and Industry written question – answered on 5th March 2007.

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Photo of Andrew Smith Andrew Smith Labour, Oxford East

To ask the Secretary of State for Trade and Industry what consultation he is planning with interested stakeholders on directors' reporting of social and environmental matters in accordance with the Companies Act 2006.

Photo of Margaret Hodge Margaret Hodge Minister of State (Industry and the Regions)

holding answer 27 February 2007

The Government consulted widely in formulating the narrative reporting provisions in the Companies Act 2006 and they were the subject of extensive parliamentary debate during the passage of the Act.

All companies, other than small companies, are required to produce a Business Review. The Companies Act 2006 introduces a new requirement for quoted companies—to the extent necessary for an understanding of the business—to report on environmental matters, the company's employees, social and community issues, and relationships with key suppliers. The new provisions in the Act will enhance the transparency of that reporting and make it easier for shareholders to hold the directors to account in all aspects, including social and environmental issues, of the company's performance.

No further consultation is planned on these requirements but, as I said during the passage of the Act through Parliament, we will review the Business Reviews once they have been in operation for two years.

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