CLLS Response to the government's payment practices consultation

The Company Law Committee submitted its response to the Department for Business and Trade consultation in respect of the Reporting on Payment Practices and Performance Regulations 2017 and Limited Liability Partnerships (Reporting on Payment Practices and Performance) Regulations 2017. It agreed that the Regulations should be extended beyond their current expiry date of 6th April 2024 and commented on other potential amendments and improvements to the Regulations, such as reporting on the proportion of transactions not paid within terms; in-scope entities being required to report on the total value of due payments which have not been paid within agreed terms; and requiring a report on payment practices to improve supplier payment practices and to give shareholders and other stakeholders better visibility on how a company’s directors are meeting their section 172(1) duties.