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Clifford Chance

Clifford Chance

Briefings

From Shareholders To Stakeholders Section 172 Statement: Telling your Story

22 October 2019

For financial years starting on or after 1 January 2019, all large companies must include a statement in their strategic report describing how the directors have had regard to the matters set out in s.172(1)(a)-(f) Companies Act 2006 (duty to promote the success of the company) during the financial year under review (a "section 172 statement").

For premium listed companies, there is a further overlay to this statutory requirement. Provision 5 of the UK Corporate Governance Code 2018 states that the board should understand the views of the company’s other key stakeholders and describe in the annual report how their interests and the matters set out in s. 172 Companies Act 2006 have been considered in board discussions and decision-making. Download our briefing to read practical guidance on what key disclosures companies should consider making in their section 172 statement.

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