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Strategic report - Coggle Diagram
Strategic report
To inform members and help them assess how the directors have performed their duty under CA2006 s.172
A new requirement to include a section 172 statement that describes how the directors have had regard to the matters set out in section 172 (a) to (f)
Identification of the company's key stakeholders, it is important to know not only who the key stakeholders are but also why
Clearly identify what the principal decisions were and demonstrate the significance of any stakeholder engagemetn
As the evidence to support decisions reached may not always be presented or discussed in depth at the final board meeting but at earlier planning meetings it is important for the company secretary to maintain a list of the major decisions reached during the course of the year and to collate the necessary supporting evidence in order to provide an appropriate overview
Companies are encourage to use examples to illustrate which of the six s.172 elements were the most relevant, how they were addressed, the factors taken into account when reaching a decision such as the effect of stakeholder enagement
Build on the s.172 statement from the previous report showing how previous decisions have impacted on the company
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It is important to demonstrate how the directors have influenced the decision making process through, for example corporate culture
If the s.172 statement is not located within the strategic report to aid overall reporting appropriate cross referring must be kept in the strategic and fdirectors reports to provide a complete picture
Should provide members with information that is relevant and helpful in assessing stewardship by the directors
Must include a statement from the directors to explain the main trends and factors affecting the long term success and future viability of the company
Governance Code 31 goes further requiring boards to explain in the annual report how it has assessed the prospects of the company, over what period it has done so and why it considers that period to be appropriate
Should state whether it has a reasonable expectation that the company will be able to continue in operation and meet its liabilities as they fall due over the period of their assessment, drawing attention to any qualifications or assumptions
Balanced and comprehensive analysis of the development and performance of the business during the year and the position at the year end, consistent with the size and complexity of the business
Specific to the company and explain how any relevant general economic or market factor have a particular effect on the company and the steps being taken to take advantage or mitigate those factors
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The directors may exclude and not disclose information if in their opinion, disclosure would be seriously prejudicial to the interests of the company
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