PART 1Access to finance

Business payment practices

3Companies: duty to publish report on payment practices and performance

1

The Secretary of State may by regulations impose a requirement, on such descriptions of companies as may be prescribed, to publish, at such intervals and in such manner as may be prescribed, prescribed information about—

a

the company's payment practices and policies relating to relevant contracts of a prescribed description, and

b

the company's performance by reference to those practices and policies.

2

For the purposes of this section—

  • company” has the meaning given by section 1(1) of the Companies Act 2006 (but see subsection (3));

  • a contract is a “relevant contract” if—

    1. a

      it is a contract for goods, services or intangible assets (including intellectual property), and

    2. b

      the parties to the contract have entered into it in connection with the carrying on of a business;

  • prescribed” means prescribed by the regulations.

3

The regulations may not impose a requirement on a company in relation to any time during which—

a

it qualifies as a micro-entity for the purposes of section 384A of the Companies Act 2006,

b

the small companies regime under that Act applies to it (see section 381 of that Act), or

c

it qualifies as medium-sized for the purposes of section 465 or 466 of that Act.

4

“The company's payment practices and policies” has such meaning as may be prescribed and the information which may be prescribed may, in particular, include information—

a

about the standard payment terms of the company and whether these are part of any code of conduct or code of ethics of the company,

b

about payment terms of the company which are not standard,

c

about the processing and payment of invoices,

d

by reference to such codes of conduct or standards as may be prescribed and as are applicable to companies generally or to companies of a prescribed description,

e

about disputes relating to the payment of invoices, including any dispute resolution mechanism that the company uses,

f

about payments owed or paid by the company due to late payment of invoices, whether in respect of interest or otherwise.

5

The regulations may require that information published in accordance with the regulations must be approved or signed by such description of person as may be prescribed.

6

The regulations may require such of the information required to be published as may be prescribed to be given, in such form as may be prescribed, to prescribed persons.

7

The regulations may make provision for a prescribed breach by a prescribed description of person of a requirement imposed by the regulations to be an offence punishable on summary conviction—

a

in England and Wales, by a fine;

b

in Scotland or Northern Ireland, by a fine not exceeding level 5 on the standard scale.

8

Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.

9

Regulations under this section are subject to affirmative resolution procedure.