The very largest companies will have to provide an Operating and Financial Review (OFR), which is a narrative report on the company’s business, its performance and future plans. Larger companies will be defined as those meeting two out of the three following criteria:
|
Public companies (Plc)
|
Private companies (Ltd)
|
|
| Turnover more than |
£50m
|
£500m
|
| Balance sheet total more than |
£25m
|
£250m
|
| No. of employees more than |
500
|
5,000
|
In addition, quoted companies will be required to prepare a directors’ remuneration report. Quoted companies will also be required to publish their accounts on their website within four months of their year end.
The government is also keen to see institutional investors, such as insurance companies and pension funds playing a more effective role in corporate governance.