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Essential information For managers and unions

10th April 1982, Page 29
10th April 1982
Page 29
Page 29, 10th April 1982 — Essential information For managers and unions
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Which of the following most accurately describes the problem?

The Companies Acts impose a daunting range of requirements on all limited companies and it is vital that managers should come to terms with them. This brief abstract will help. It is accompanied by an ACAS guide to wage negotiations that should also prove a boon equirements under the Acts

IE MAIN Companies' Act, still fective, was passed in 1948 ith an amending Act passed in 167. It is usual when discussing e legislation to combine these Id refer to the Companies Acts 148 & 1967. Since 1967, there ive been other small changes issed in various Companies All limited companies must be gistered by the Registrar of Dmpanies and file an annual turn, including the annual acflints, at Companies House. le report and accounts are split to a number of sections. The formation disclosed will vary, some extent from one cornmy to another, but the folwing will usually be shown by rge companies.

The Directors' Report giving The principal activities of the company and, if the company is engaged in several different types of business, details of the sales and profits of each one.

The names of directors and details of the shares held by them and their immediate family.

The name and number of shares owned by any person or organisation with more than 5 per cent holding.

If employing more than 100 people in the UK and if it is not a subsidiary of another UK company, the average number of employees in the UK during the year and their total pay.

Significant changes in permanent items owned by the company.

Details of the number of new shares issued by the company.

The total value of exports if total sales are more than E1 million.

If 10 per cent of the business is overseas, a geographical breakdown of the sales and profits of that business.

Details of donations to politi cal parties and organisations if they are more than £50.

• The Profit and Loss Account showing 1 How much the company has received for its goods and services — the sales figure.

2 How much remains as profit after expenses have been met and any additional income included.

3 How the profit has been split between taxes, payments to shareholders, reinvestments in the company, etc.

• The Balance Sheet showing for a particular date (the last date of the company's financial year) 1 What the company owns (its assets), eg land, raw materials, cash, etc.

2 Where the money came from to pay for these assets.

• Sources and Application of Rinds statement showing 1 How cash was generated through the year, for example, by profits and additional borrowing.

2 How cash was used — on such things as new investments or greater holdings of stocks.

• Current Cost Accounts which are accounts adjusted for the effects of inflation. The main adjustments are 1 The cost of sales adjustment.

2 The monetary working capital adjustment.

3 Additional depreciation adjustment.

4 The gearing adjustment.

-• Report of the Auditors Auditors, who must be independent accountants, must examine the books of the company and report to the shareholder whether the accounts give a 'true and fair view'. • Value Added Statement showing 1 The total sales income of the company and a deduction of the total materials and bought in service costs to give a figure of Added Value.

2 The division of the Added Value among employees (wages and salaries), shareholders (dividends), the Government (taxes) and the company (retained profit).

• Chairman's Statement Usually a personal view of the past performance of the company with explanations for its failures and successes. Also some prediction on future fortunes or lack of them.

• Notes to the Accounts Usually the largest section of the annual accounts. It gives all the details of the information companies are legally obliged to provide, but because of the length and complexity are unable to show in the accounts proper.

Disclosure of Information

THE FOLLOWING is a summary of Code of Practice No 2 issued by the Advisory Conciliation and Arbitration Service 1 ... the Code imposes no legal obligations on an employer to disclose any specific item of information. Failure to observe the Code does not by itself render anyone liable to proceed ings (para 3 of Code).

2 The Act (EPA 1975) places a general duty on an employer to disclose at all stages of collective bargaining information requested by representatives of independent trade unions (para 4 of Code).

3 The information to be disclosed is that without which a trade union representative would be impeded to a material extent in collective bargaining and which it would be in accordance with good industrial relations practice to disclose for the purposes of collective bargaining (pare 5 of Code).

4 No employer is obliged to disclose any information which: would be against the interests of national security; would contravene a prohibition imposed by or wider an enactment; was given to an employer in confidence, or was obtained by the employer in consequence of the confidence reposed in him by another person; relates to an individual unless he has consented to its disclosure; would cause substantial injury to the undertaking for reasons other than its effect on collective bargaining; or was obtained for the purposes of any legal proceedings (para 6 äf Code).

5 In providing information the employer is not required to produce original documents for inspection or copying (para 7 of Code).

6 The absence of relevant information about an employer's undertaking may to a material extent impede trade unions in collective bargaining (para 9 of Code).

7 Trade unions and employers should be aware of the restrictions on the general duty to disclose information for collective bargaining (para 13 of Code).

8 Trade unions should identify and request the information they require for collective bargaining in advance of negotiations wherever practicable (pare 16 of Code).

9 Employers should aim to be as open and helpful as possible in meeting trade union requests for information (para 20 of Code).

10 Employers and trade unions should endeavour to arrive at a joint understanding on how the provisions of the disclosure of information can be implemented most effectively (pare 22 of Code).

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