The Financial Reporting Review Panel (FRRP) has issued a reminder in relation to the new disclosure requirements for directors' reports required by the Takeover Directive. The new disclosure requirements apply to directors' reports of relevant companies for financial years beginning on or after 20 May 2006. Relevant companies for these purposes are companies which have securities carrying voting rights admitted to trading on a regulated market (which includes the main market of the London Stock Exchange but not AIM) at the end of the relevant financial year.

The FRRP has identified a small number of public companies which failed to provide the new disclosures in their directors' reports.

The new disclosure requirements, which are required irrespective of whether or not a bid is contemplated, are set out in Part VII of Schedule 7 of the Companies Act 1985. A summary of some of the key disclosure requirements is set out in the FRRP reminder.

The full text of the FRRP reminder can be found here.