Reform of annual reports imminent

Changes designed to simplify and strengthen non-financial company reports will take effect from October, the Government has announced. The reforms will strengthen the position of shareholders who use annual reports as a key tool to hold the management of quoted companies to account. From October 1 this year they will include additional information on human rights issues, gender representation across the company and disclosures on greenhouse gas emissions. The legislation also addresses concern that reports are often confusing, become bogged down in corporate jargon and lack clarity. Business Minister Jo Swinson said shareholders need the right information at hand to fully hold a company to account. Annual reports should be produced in an open and transparent way to build trust and confidence. By including additional information on human rights, gender representation and greenhouse gases, these changes can only strengthen that level of trust, she said.

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