Governance in brief — New duty to report on payment practices and performance
Draft regulations expected to become effective in April 2017 impose a new duty on companies to report outside the annual report on their payment practices and performance. This new requirement falls upon individual UK companies that meet the size criteria, with no group-wide reporting possible, meaning that groups of companies will have to report every six months separately for each company that meets the criteria. Reporting will be required within 30 days of each six month period. The government hopes this will release working capital into the economy.
We encourage all boards to become familiar with these new requirements and take steps to consider their company’s current payment practices and performance, as well as their working capital requirements, in advance of their first report under the new regulations.
