ICAEW.com works better with JavaScript enabled.
Exclusive

Directors’ reports

Published: 17 Dec 2018 Updated: 05 Nov 2024 Update History

Exclusive content
Access to our exclusive resources is for specific groups of students, users, subscribers and members.

The directors of a company, excluding micro-entities, have a duty to prepare a directors’ report under s415 of the Companies Act 2006.

Information required

The information required within the directors’ report depends on the size and nature of the company or group. Different disclosures are required for each category of company.

For most companies, a directors’ report must include:

  • the names of the persons who, at any time during the financial year, were directors of the company;
  • qualifying third party indemnity provisions in force for the benefit of one or more directors of the company;
  • the amount (if any) that the directors recommend should be paid by way of dividend; and
  • a statement in respect of disclosures provided to the auditors.

Any company that is not a wholly owned subsidiary of a UK company must also disclose information on political donations and expenditure including contributions to non-UK political parties.

If the company has taken advantage of the small companies exemption in preparing the directors’ report, it does not have to contain the statement as to the amount that the directors recommend be paid by way of dividend. If taking up the small companies exemption, the directors’ report must contain a statement above the director’s or secretary’s signature and printed name to that effect.

For further information on the reporting simplifications available to companies entitled to the small companies regime, ICAEW members and Corporate Reporting Faculty subscribers can visit:

Additional content requirements

The additional information required in the directors’ report will depend on a number of different factors, including whether a company is small, medium-sized, large or quoted.  

Companies must apply the requirements relevant to them in either:

Depending on which category a company falls into, directors may be required to disclose: 

  • overseas branches;
  • share capital and securities;
  • acquisition of own shares;
  • employment of disabled persons;
  • employee engagement statement;
  • statement of engagement with suppliers, customers and others;
  • corporate governance arrangements; and
  • GHG emissions, energy consumption and energy efficiency. 

The requirements are complex and companies may find that they fall into multiple categories. For detail of the various categories of company and the disclosures required for companies that fall within them, ICAEW members and Corporate Reporting Faculty subscribers can view the factsheet:

Approval

The directors’ report must be approved by the board of directors and signed on behalf of the board by a director or secretary of the company.

Filing

A small company currently has the option not to file a copy of the directors’ report with the Registrar of Companies. If this option is taken, the balance sheet must contain a statement that the accounts have been delivered in accordance with the provisions applicable to the small companies regime.

Under changes being introduced by the Economic Crime and Corporate Transparent Act 2023 (ECCT Act), small companies will be required to file the directors’ report at Companies House. It is anticipated that this change will not be introduced before late 2025 / early 2026. To find out more about this and other changes to the preparation and filing of accounts, visit:

Further ICAEW resources

For further guidance on requirements for the directors’ report and strategic report, visit:

For more information about requirements for reporting on carbon and energy use, visit:

Corporate reporting content

An illustration of a compass
Financial reporting

A range of practical resources on UK GAAP, IFRS and UK regulations.

View hub
An illustration of an anchor
Non-financial reporting

Overviews of reporting requirements, plus a range of resources and guidance.

View hub
Graphic of a lighthouse
Join the faculty

Stay ahead of the latest developments in corporate reporting. Open to all. Charges apply for non-ICAEW members.

Join now
Open AddCPD icon

Add Verified CPD Activity

Introducing AddCPD, a new way to record your CPD activities!

Log in to start using the AddCPD tool. Available only to ICAEW members.

Add this page to your CPD activity

Step 1 of 3
Download recorded
Download not recorded

Please download the related document if you wish to add this activity to your record

What time are you claiming for this activity?
Mandatory fields

Add this page to your CPD activity

Step 2 of 3
Mandatory field

Add activity to my record

Step 3 of 3
Mandatory field

Activity added

An error has occurred
Please try again

If the problem persists please contact our helpline on +44 (0)1908 248 250