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The strategic report and how to prepare one

All companies, except small companies and micro-entities, must prepare a strategic report in accordance with s414A of the Companies Act 2006 (CA 2006).

The purpose of a strategic report is to inform shareholders and help them assess how the directors of a company have performed their duty (in accordance with s172 of CA 2006) to promote the success of the company for the benefit of its members as a whole.

The strategic report should reflect the directors’ view of the company – often this is expressed as the company ‘telling its story’. It should clearly communicate information that is material to shareholders in a way that is easy to digest and navigate by readers.