'Director know how' is a monthly article which highlights key rule changes, proposed changes and market updates so that you know what is coming down the track.
European Commission to propose quotas for women on boards
Draft proposals from Vivian Redding, the EU justice commissioner, suggest that listed companies will be forced to have at least 40 per cent of their non-executive director board seats held by women by 2020 or face fines and other sanctions. Ms Redding is expected to formally announce this in October; however, she has come up against a backlash of opposition, with nine member states writing to the Commission to say they oppose the proposals, arguing that sanctions and potential quotas should remain under the control of national jurisdictions.
Financial Reporting Lab publishes report on Net Debt Reconciliation
The Financial Reporting Lab has published a report on its most recent project on net debt reconciliation. The Lab worked closely with five leading companies and a range of investors in preparing the observations contained in the project report. The report shows how some companies are defining net debt and disclosing various cash and non-cash movements in net debt that might not otherwise be apparent from financial reports. Our CEO Tim Ward sits on the Financial Reporting Lab, so please let us know if you have any comments on this project or suggestions for future projects by emailing Maria Gomes, Head of Policy.
Government announces proposals for a new route to the IPO market for high growth companies
On 20 September 2012, the Department for Business, Innovation and Skills announced that it has developed proposals with the London Stock Exchange for a new route to the IPO market for high growth companies. These new proposals are likely to include amendments to free float requirements, eligibility criteria and reporting requirements and will be outlined in full alongside the Financial Services Authority's ongoing review into the Listing Rules by the end of 2012.