Bruce Wallace Associates London
Bruce Wallace Associates London


October 2020

12 October, 2020

Q: We have a new director joining our PLC board in January, what sort of information should I make available to her?

A: The UK Corporate Governance Code expects all directors of companies with a premium listing to have a "full, formal and tailored induction" and 2018 FRC Guidance proposes "a comprehensive, formal and tailored induction that should extend beyond the boardroom”.

ICSA guidance note Induction of directors (May 2015) contains a lot of practical advice on induction and suggests that the process should aim to build an understanding of the nature of the company, its business and markets, establish a link with the company's people and an understanding of the company's main relationships and ensure an understanding of the role of a director and the framework within which the board operates.

Induction will involve the provision of information, ensuring the new directors is introduced to key stakeholders and company advisers and may include site visits. Key aspects to cover include:

  • Explaining the director’s role and the legal framework and structure of the Group and providing a copy of the constitution documents and other key corporate documents.
  • Brief biographical and contact details of all directors, the company secretary and key executives.
  • Board meetings details and procedural information. Including copies of past board/committee meeting packs and minutes.
  • Supplying copies of Group governance policy documents (e.g. relevant internal rules and procedures of the company and the board, terms of reference, share dealing policy etc).
  • Presentations where senior management teams can brief the newly appointed director on the company's business, significant/emerging risks and key performance indicators.
  • Information on investors to aid understanding of the make-up of the company's shareholder base.

If you need any help with company secretarial or governance matters, please contact us. All our contact details are on our website

September 2020

1 September, 2020

Q: The Directors would like to undertake a board evaluation; how can we do this?

A: At the outset, the Board should consider the purpose for conducting a board evaluation. It may be the Board has been through several changes which its needs to evaluate, or is looking to agree priorities for the future, or comply with its governance code. Whatever the reasons, identifying the purpose of the evaluation will help to focus its structure and ensure there is agreement on the aim of the evaluation.

Whilst the UK Corporate Governance Code specifies evaluation on an annual basis and the Quoted Companies Alliance Corporate Governance Code states that the Board should ‘regularly review’ its effectiveness, there is no set format of how an evaluation needs to be conducted. To date, questionnaires and interviews have formed the basis for an evaluation, but if a Board would prefer an alternative method of evaluation this can be agreed. The Chartered Governance Institute has consulted on ways to improve the quality and effectiveness of board evaluations, so there is some potential for change on this.

Both individual director as well as whole board performance should be reviewed, and keeping the content tailored to the company’s circumstances and relevant to the recent period will ensure better engagement. Any findings from previous evaluations should be considered to ascertain if these have been fully addressed, as well as appropriate questioning on recent challenges, such as crisis management over the past year, and whether there is sufficient stakeholder engagement.

A successful board evaluation can help to improve dynamics as well as ensure there has been appropriate reflection on issues dealt with by the Board. It can also serve to identify whether there is agreement on the Board’s future priorities. Any actions identified as part of the evaluation should have clear ownership and be regularly reviewed over the next year.

If you need any help with your board evaluation, please contact us. All our contact details are on our website

August 2020

1 August, 2020

Q. The filing deadline date for our subsidiary companies’ accounts is fast approaching and we are struggling to get these finalised, do we need to apply for an extension of time?

A. The Companies etc (Filing Requirements) (Temporary Modifications) Regulations 2020 (2020 Regulations) came into force on 27 June 2020. With effect from this date, filing deadlines are extended if the filing date deadline falls any time from 27 June 2020 to 5 April 2021 (including these dates). Regulation 11 of the 2020 Regulations amends CA 2006, s 442 relating to companies and Regulation 12 amends CA 2006, s 442 relating to LLPs.

The 2020 Regulations extend the filing deadline by three months, to 12 months for private companies and nine months for public companies. The extension granted by the 2020 Regulations applies to the original filing deadline. It will not be added to a filing extension already granted by Companies House.

These are temporary measures and filing deadlines falling after 6 April 2021 or later will not be automatically extended.

The 2020 Regulations also temporarily extend filing periods for confirmation statements, event-driven filing obligations and mortgage charges. Guidance can be found on the Companies House website

You can find the 2020 Regulations at

If you need any help filing your accounts or with any company secretarial matters generally, please contact us. All our contact details are on our website

July 2020

1 July, 2020

The Wates Principles

Q. We are a large private company and we understand we are required to report against the Wates Principles in our next set of accounts. Can you summarise when these governance principles were introduced and the main issues we need to address?

A. The Wates Principles were published on 10 December 2018, as part of a wider package of Government corporate governance reforms.

The legal requirements, as set out in The Companies (Miscellaneous Reporting) Regulations 2018 (SI 2018/860) (the ‘CMRR 2018’), state that large private companies are required to report on their corporate governance arrangements in the annual report and on their website and to outline which, if any, formal corporate governance codes the company has applied and how it has been applied.

The reporting requirement, that came into effect for accounting periods commencing on or after 1 January 2019, applies to all private companies that satisfy either or both of the following conditions:

  • those companies with more than 2,000 employees; and
  • a turnover of more than £200 million and a balance sheet of more than £2 billion.

The Wates Principles introduce an approach to good corporate governance that provides flexibility and assistance for the large, private, unlisted companies which are subject to the thresholds set out under CMRR 2018 and aim to suit private companies better than the codes used by listed companies, such as the UK Corporate Governance Code or the QCA Corporate Governance Code.

The Wates Principles is a voluntary framework that adopts the ‘apply and explain’ approach. If a company chooses to apply these, they should describe and explain how they have addressed each of the six high level principles in the company’s governance practices. This is in effect to allow for increased transparency for stakeholders and links to how the directors have discharged their section 172 duty.

The principles include:

  • Purpose and Leadership
  • Board Composition
  • Director Responsibilities
  • Opportunity and Risk
  • Remuneration
  • Stakeholder Relationships
  • Engagement

If you need any help with your governance statement or with any of your governance policies generally, please contact us. All our contact details are on our website

June 2020

1 June, 2020

Share Option Annual Returns

Q. We have had no option exercises this year. Do I still need to file a return? When is the deadline and can I file the return myself or do I need special software to do this?

A. If you are an employer operating employment related securities (ERS) schemes, you (or an agent acting on your behalf) must submit an ERS return every year for each of your schemes, including one-off awards or gifts of shares.

The tax year runs from 6 April to 5 April the following year. You then have until midnight on 6 July to submit your annual return. If you do not, you or your employees may lose any tax advantages from the scheme.

You need to submit an ERS return (or nil return) even if:

  • there have been no transactions
  • you have appealed a late filing penalty
  • the scheme has been registered in error or there is a duplicate scheme
  • you did not get a reminder from HMRC

If you have nothing to report, you must submit a nil return by going to; no special software is required.

You will need the Government Gateway user ID and password you used when you told HMRC about the scheme.Employers, or agents acting on their behalf, can use this service to:

  • check files for formatting errors
  • submit annual ERS returns and/or nil returns after the tax year end

Usually when submitting your return, you will be required to complete and upload the relevant template to notify HMRC of any movements in your scheme during the tax year. If you are submitting a nil return only, no file attachments are required; you simply need to follow the on-screen instructions and enter some basic company information to submit your nil return.

If you have any questions regarding share options or you need help submitting your returns please contact any of the team at Bruce Wallace – you will find all our contact details on our website


Martha Bruce

Susan Wallace

Chloe Higgins

Adrienne Graham

Anne-Marie Palmer

Registered office:
118 Pall Mall

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Company registered in England and Wales number 8254957

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