02 November 2006
Quoted companies will have to publish information about their suppliers in their annual business review, following an amendment to the Companies Bill.
The bill aims to improve engagement with share-holders, ensure better regulation and make it easier to set up and run a company. All companies, other than smaller concerns, must produce an annual review so shareholders can assess directors' performance.
This must include details on environmental matters, employees, and any relevant social issues.
As a result of the Department of Trade and Industry (DTI) amendment, listed firms must now also include pertinent details on suppliers. The DTI told SM
it is not "prescribing" what should and should not be included. It suggests relevant details might include where a company has a sole supplier of a product or service that is core to its business, or where suppliers fit with its branding.
Business leaders attacked the amendment as contrary to the deregulatory intent of the bill.