New Corporate Governance Rules for Private Companies

New regulations will be laid before Parliament today to require large private companies to report on their corporate governance arrangements.  The regulations form part of a package of reforms by the Government, aimed at improving governance and trust in business.

All large companies will also have to report on how their directors take employee – and other stakeholder – interests into account.  And the largest listed companies will have to disclose the difference in pay between their chief executives and staff.

Subject to Parliamentary approval the regulations will come into effect from 1 January 2019.

These regulations are part of the Government’s Corporate Governance Reforms announced last summer.  As part of the reforms the Secretary of State for Business, Energy and Industrial Strategy asked the IFB to join a coalition to develop new principles for corporate governance in private businesses.  James Wates CBE was appointed in January to Chair the Coalition, which is due to publish a consultation on the new proposed principles shortly.

Speaking at the time of his appointment, James Wates CBE said: “I am delighted to have been asked to chair this very important piece of work. I feel passionately that good business, well done, can be a force for good in society.  I hope that the standards produced through this effort will help promote and enable ever-stronger and more consistent corporate governance amongst large private companies, which generate significant value for the UK economy and society.”

To find out more about all the reforms underway, and how they will affect your family business, join our webinar on 26 June.  More information here.