Corporate Reporting Governance Forum event December 2019
Mazars and the Quoted Companies Alliance welcomed over 50 Finance Directors and board members of AIM quoted and smaller listed companies across the UK for our annual year-end update.
Much of the discussions focused on corporate reporting and it was interesting to hear that while most boards appreciate the importance of narrative reporting, they also admit they don’t feel they are doing enough. Other highlights from these roundtable updates include:
of the 927 AIM companies at the end of 2018 chose to adopt the QCA Corporate
Governance Code and in doing so 42% of a sample surveyed said it had helped
them to formalise new processes and 40% said it had led them to disclosing more
information than previously.
has been a substantial growth in investor interest in ESG issues recently and
AIM,, as well as companies listed on the Main Market, will need to take account
of this in their governance and reporting.
need to ensure they have a good understanding of the culture of their business –
this is very definitely about it being ethical but also about whether it is
team or individually orientated, how focused it is on innovation and the
attention paid to other stakeholders as well as employees.
risk management is also high on the boardroom agenda with emphasis on areas
such as cybersecurity, not allowing the business to get out of date and
ensuring effective crisis management preparations are in place and tested.
are additional disclosure requirements for some fully listed companies in
relation to CEO’s pay and the effect of share price movements on directors’
remuneration. Many companies will have to start reporting on application
of their responsibilities under s172 of the Companies Act on employee, customer
and supplier engagement this year, both at group and subsidiary level.
Energy and carbon reporting requirements come in for many private companies
from years starting after 1 April 2019.
FRC published its Annual Review of Corporate Reporting 2018/2019 in October
with helpful guidance for audit committees and FDs, as well as auditors, on
areas for focus based, in particular, on the results of its monitoring work.
A special thank you to Tim Ward, Chief Executive of the
Quoted Companies Alliance and Dick Steele, QCA Director and Chair of
Portmeirion Group for their contribution to the series. A debrief will be