delete NEW SCHEDULE TO THE COMMUNITY INTEREST COMPANY REGULATIONS 2005
The Companies (Miscellaneous Reporting) Regulations 2018 introduced requirements for companies to include section 172(1) statements in strategic reports describing how directors had regard to stakeholder matters, employee and supplier engagement statements in directors' reports, and corporate governance arrangements statements for larger companies. Unquoted companies must publish these statements on websites. Medium-sized companies and those below certain thresholds are exempt from some requirements.
These regulations impose mandatory disclosure and reporting requirements that add significant compliance costs, particularly for larger companies. The section 172(1) statement requirement obliges directors to publicly document their decision-making process regarding stakeholders, creating a chilling effect on bold corporate leadership. The employee and supplier engagement reporting requirements introduce bureaucratic box-ticking without clear benefit—information about corporate governance practices is already available to institutional investors through market mechanisms. The website publication requirements add ongoing maintenance burdens. These requirements likely contribute to the UK's deteriorating competitiveness as a listing venue, with companies preferring New York or Singapore where such prescriptive stakeholder reporting does not apply. Such disclosure requirements are best addressed through voluntary market-driven transparency rather than statutory mandates.