The much-delayed reforms are contained in a white paper drawn up after accounting scandals at UK companies including Carillion, BHS and Patisserie Valerie. The government said large companies will be required to restrict dividends and bonuses if the businesses cannot cover the payments from reserves or there is a risk of insolvency. The white paper referred to “high-profile examples of paying out significant dividends shortly before profit warnings and, in some cases, insolvency”. Business secretary Kwasi Kwarteng said: “When big companies go bust, the effects are felt far and wide with job losses and the British taxpayer picking up the tab. However, ministers are to consider exempting newly listed companies to help the UK stay competitive on initial public offerings.

Source: The Irish Times March 18, 2021 08:15 UTC