Companies Act 2006

[F1[F2414CANon-financial information statementU.K.

(1)A strategic report of a company must include a non-financial information statement if the company was at any time within the financial year to which the report relates—

(a)a traded company,

(b)a banking company,

(c)an authorised insurance company, or

(d)a company carrying on insurance market activity.

(2)If the company’s strategic report is a group strategic report, the non-financial information statement to be included in the report under subsection (1) must be a consolidated statement (a “group non-financial information statement”) relating to the undertakings included in the consolidation.

(3)Subsection (1) does not apply if—

(a)the company is subject to the small companies regime in relation to that financial year (see sections 382 to 384), or

(b)the company qualifies as medium-sized in relation to that financial year (see sections 465 to 467).

(4)Subsection (1) does not apply if—

(a)where the company was not a parent company in that financial year, the company had no more than 500 employees in that financial year, or

(b)where the company was a parent company at any time within that financial year, the aggregate number of employees for a group headed by that company in that financial year was no more than 500.

(5)The number of employees means the average number of persons employed by the company in the year, determined as follows—

(a)find for each month in the financial year the number of persons employed under contracts of service by the company in that month (whether throughout the month or not),

(b)add together the monthly totals, and

(c)divide by the number of months in the financial year.

(6)The aggregate number of employees for a group is ascertained by aggregating the relevant figures determined in accordance with subsection (5) for each member of the group.

(7)Subsection (1) does not apply if the company is a subsidiary undertaking at the end of that financial year and is included in—

(a)a group strategic report of a parent undertaking of the company that satisfies the requirements in subsection (8), or

(b)a report that satisfies the requirements in subsection (9).

(8)The requirements in this subsection are that—

(a)the group strategic report relates to undertakings that include the company and its subsidiary undertakings (if any),

(b)the report is prepared for a financial year of the parent undertaking that ends at the same time as, or before the end of, the company’s financial year, and

(c)the report includes a group non-financial information statement in respect of all the undertakings included in the consolidation.

(9)The requirements in this subsection are that—

(a)the report is—

(i)a consolidated management report under Article 29 of Directive 2013/34/EU of the European Parliament and of the Council on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, or

(ii)such separate report as is referred to in Article 19a(3) or 29a(3) of that Directive,

(b)the report is the report of a parent undertaking of the company established under the law of an EEA State,

(c)the report relates to undertakings that include the company and its subsidiary undertakings (if any), and

(d)the report includes such information as is required by Article 19a (non-financial statement) or Article 29a (consolidated non-financial statement), as the case may be.

(10)A company to which subsection (1) does not apply may include a non-financial information statement in its strategic report or, as the case may be, a group non-financial information statement in its group strategic report.]]