What minimum global balance sheet figure requires companies to disclose governance arrangements?

The requirement for companies to disclose governance arrangements is typically tied to their size and impact in the market. In many jurisdictions, a minimum global balance sheet threshold is set to ensure that only larger companies, which have a significant presence and influence, must adhere to more stringent disclosure rules.

The figure of £2 billion is significant as it indicates a level of capitalization and financial resources that can impact the broader market and stakeholders. By establishing this threshold, regulators aim to ensure that companies with substantial assets are transparent about their governance practices, as these practices can directly affect investors, employees, and the overall economy.

Smaller companies, with balance sheets below this threshold, may not have the same level of complexity or market impact, thus they could be subjected to less rigorous disclosure requirements. This approach allows regulators to focus on larger firms that are more likely to pose systemic risks or have a more substantial footprint in terms of their governance practices.