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—
- a
it is a contract for goods, services or intangible assets (including intellectual property), and
- b
the parties to the contract have entered into it in connection with the carrying on of a business;
- a
“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.