The Companies (Miscellaneous Reporting) Regulations 2018 introduced several new reporting requirements to enhance corporate governance transparency in the UK. A key provision, amending the Companies Act 2006, mandates that UK-registered companies with more than 250 employees must include a specific statement in their annual Directors' Report. This statement must describe the actions taken to engage with employees, how the directors have considered employee interests, and the effect of this consideration on the principal decisions made by the company during the financial year. This requirement aims to ensure that the employee voice is considered at the board level.

A. Publish an Anti-Slavery Policy: This is a requirement under the Modern Slavery Act 2015 for organisations with a turnover of £36 million or more, not the 2018 Miscellaneous Reporting Regulations.

B. Provide an annual financial statement: This is a fundamental and long-standing requirement for most companies under the Companies Act 2006, not a new provision specific to the 2018 regulations.

C. Demonstrate how they abide by Environmental practices: While these regulations did introduce Streamlined Energy and Carbon Reporting (SECR), option D is a more direct and specific corporate governance requirement introduced for this employee threshold.

1. The Companies (Miscellaneous Reporting) Regulations 2018

SI 2018/860. Part 4

Regulation 10 amends the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to insert a new requirement (Schedule 7

paragraph 11) for a statement on employee engagement. Available at: https://www.legislation.gov.uk/uksi/2018/860/regulation/10/made

2. Explanatory Memorandum to The Companies (Miscellaneous Reporting) Regulations 2018. Section 7.4 explicitly states: "This instrument also introduces a new requirement for companies with more than 250 UK employees to include a statement in the directors’ report summarising how the directors have engaged with employees and how they have had regard to employee interests." Available at: https://www.legislation.gov.uk/uksi/2018/860/memorandum/contents

3. Financial Reporting Council (FRC). (2018). Guidance on the Strategic Report. This guidance was updated to reflect the 2018 regulations and provides context on the new reporting requirements

including the Section 172 statement and specific employee engagement disclosures (Paragraphs 7.30-7.33). Available via the FRC website.