The purpose of the strategic report is to inform members of the company and help them assess how the directors have performed their duty under section 172 (duty to promote the success of the company).
The review required is a balanced and comprehensive analysis of—
consistent with the size and complexity of the business.
The review must, to the extent necessary for an understanding of the development, performance or position of the company's business, include—
In subsection (4), "key performance indicators" means factors by reference to which the development, performance or position of the company's business can be measured effectively.
Where a company qualifies as medium-sized in relation to a financial year (see sections 465 to 467), the review for the year need not comply with the requirements of subsection (4) so far as they relate to non-financial information.
In the case of a quoted company the strategic report must, to the extent necessary for an understanding of the development, performance or position of the company's business, include—
including information about any policies of the company in relation to those matters and the effectiveness of those policies.
If the report does not contain information of each kind mentioned in paragraphs (b)(i), (ii) and (iii), it must state which of those kinds of information it does not contain.
In the case of a quoted company the strategic report must include—
In subsection (8), "senior manager" means a person who—
In relation to a group strategic report—
The strategic report may also contain such of the matters otherwise required by regulations made under section 416(4) to be disclosed in the directors' report as the directors consider are of strategic importance to the company.
The report must, where appropriate, include references to, and additional explanations of, amounts included in the company's annual accounts.
Subject to paragraph (10), in relation to a group strategic report this section has effect as if the references to the company were references to the undertakings included in the consolidation.
Nothing in this section requires the disclosure of information about impending developments or matters in the course of negotiation if the disclosure would, in the opinion of the directors, be seriously prejudicial to the interests of the company.