Section 172 of the Companies Act 2006 sets out a number of general duties that directors owe to a company. These include a general duty requiring directors to act in a way in which they consider, in good faith, will promote the success of the company for the benefit of shareholders as a whole, and in doing so have regard to the following factors:
• The likely consequences of any decision in the long term.
• The interests of the Company’s employees.
• The need to foster the Company’s business relationships with suppliers, customers, and others.
• The impact of the Company’s operations on the community and the environment.
• The desirability of the Company to maintain a reputation for high standards of business conduct.
• The need to act fairly between members of the Company.
Certain companies which qualify as ‘large companies’ under the Companies Act 2006 also need to include a s.172 statement in the Strategic Report within the Annual Report to help shareholders better understand and explain how the directors have had due regard to the factors above in the year under review. Within the Dunelm Group the following subsidiary falls within the scope and is required to make such a statement, see below for the relevant section 172(1) statement:
Dunelm (Soft Furnishings) LTD