By Alison Johnson
With the aim of improving transparency and accountability across the UK’s corporate landscape, large companies incorporated in England and Wales will, by 1 January 2019, have to put in place various new governance arrangements.
For financial years beginning on or after 1 January 2019, all companies with an average number of more than 250 employees in the UK will need to disclose in their directors’ (or strategic) report how they have:
- shared with employees systematically information of concern to them as employees;
- consulted with them (or their representatives) regularly in order to factor their views into company decisions likely to affect their interests;
- encouraged employee involvement in the company’s performance (e.g. through employee share schemes); and
- sought to achieve employee awareness of financial/economic factors affecting the company’s performance.