Companies Act 2014 section 1586

Definition of "applicable company"

Section 1586 defines which companies are considered "applicable companies" for the purposes of corporate sustainability reporting obligations under Part 28 of the Companies Act 2014.

• A company that qualifies as a large company for a given financial year is automatically an applicable company subject to sustainability reporting requirements
• A small or medium-sized company (but not a micro company) that is also a public-interest entity with securities traded on a regulated market is likewise an applicable company
• When assessing whether a company meets the relevant size thresholds, references to turnover in the size criteria must be read as references to net turnover as defined in Part 28
• The definition extends to certain unlimited companies known as "designated ULCs," bringing them within the scope of sustainability reporting even though they are not limited companies