Company Reform Is Piecemeal

2.21.00pm BST (GMT +0100) Wed 5th May 2004

Companies may soon be required to provide annual reports setting out their business objectives and strategies. A consultation on draft regulations for a statutory Operating and Financial Review was launched today by the DTI.

Responding, Malcolm Bruce MP, Liberal Democrat Shadow DTI Secretary, said: "If this isn't just going to be a rose-tinted exercise to make the Government feel good about itself, then company reporting has to be operated within meaningful guidelines and be regulated and enforced.

"The Government seems to be addressing the issue of company reform in piecemeal fashion instead of introducing comprehensive legislation. The result is that business doesn't know what the Government is going to come up with next."

ENDS

Notes

The OFR regulations will require quoted companies to provide a report setting out the company's business objectives and strategy, but also on other matters where they are necessary for an understanding of the business. These matters include employees, the environment and social and community issues.