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\n <\/a>\n <\/div>\n \nIn the blog below, we explain more, including what a directors’ report is and what information it contains. We also clarify who is responsible for preparing and filing the report and the benefits of doing so.<\/p>\n
\n <\/i>\n Key Takeaways<\/span>\n <\/h3>\n \n <\/p>\n\n- A directors\u2019 report is part of the annual accounts that small, medium, and large companies must prepare each financial year. Micro-entities and dormant companies are exempt.<\/li>\n
- Directors prepare the report, providing an overview of the company\u2019s performance during the financial year. It includes information such as the recommended dividend, financial risk management objectives, and employee engagement policies. Depending on their size, some companies may be subject to additional requirements.<\/li>\n
- A company\u2019s first set of annual accounts (along with a directors\u2019 report) is due at Companies House 21 months after incorporation. After that, the filing deadline is no later than 9 months after the accounting reference date (ARD).<\/li>\n<\/ul>\n
<\/div>\n <\/div>\n \n
What is a directors’ report?<\/h3>\n
A directors\u2019 report is an overview of the company\u2019s performance during the financial year. It\u2019s a supplementary document to the annual accounts, which the directors prepare and file each year with Companies House.<\/p>\n
One of the primary purposes of a directors\u2019 report is to maintain good communication between the shareholders (also known as members), who own the company, and the board of directors, who run the company day to day on behalf of the shareholders. The directors\u2019 report helps the shareholders assess whether the board has fulfilled their duty to promote the company\u2019s success and keeps them in the loop about business performance.<\/p>\n
Companies House also uses the directors\u2019 report to evaluate the company\u2019s compliance with relevant laws and regulations and corporate transparency.<\/p>\n
Who needs to file one?<\/h3>\n
Small, medium, and large companies must prepare and file a directors\u2019 report along with their annual accounts every financial year. Micro-entities and dormant companies are typically exempt.<\/p>\n
Directors are personally responsible for ensuring the report is accurate and filed on time. Failure to do so is an offence and could result in fines and convictions.<\/p>\n
Below is a comparison of the criteria for micro, small, medium, and large companies.<\/p>\n
- \n
- A directors\u2019 report is part of the annual accounts that small, medium, and large companies must prepare each financial year. Micro-entities and dormant companies are exempt.<\/li>\n
- Directors prepare the report, providing an overview of the company\u2019s performance during the financial year. It includes information such as the recommended dividend, financial risk management objectives, and employee engagement policies. Depending on their size, some companies may be subject to additional requirements.<\/li>\n
- A company\u2019s first set of annual accounts (along with a directors\u2019 report) is due at Companies House 21 months after incorporation. After that, the filing deadline is no later than 9 months after the accounting reference date (ARD).<\/li>\n<\/ul>\n
<\/div>\n <\/div>\n \n
What is a directors’ report?<\/h3>\n
A directors\u2019 report is an overview of the company\u2019s performance during the financial year. It\u2019s a supplementary document to the annual accounts, which the directors prepare and file each year with Companies House.<\/p>\n
One of the primary purposes of a directors\u2019 report is to maintain good communication between the shareholders (also known as members), who own the company, and the board of directors, who run the company day to day on behalf of the shareholders. The directors\u2019 report helps the shareholders assess whether the board has fulfilled their duty to promote the company\u2019s success and keeps them in the loop about business performance.<\/p>\n
Companies House also uses the directors\u2019 report to evaluate the company\u2019s compliance with relevant laws and regulations and corporate transparency.<\/p>\n
Who needs to file one?<\/h3>\n
Small, medium, and large companies must prepare and file a directors\u2019 report along with their annual accounts every financial year. Micro-entities and dormant companies are typically exempt.<\/p>\n
Directors are personally responsible for ensuring the report is accurate and filed on time. Failure to do so is an offence and could result in fines and convictions.<\/p>\n
Below is a comparison of the criteria for micro, small, medium, and large companies.<\/p>\n
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