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172 | Environmental and social transparency under the Companies Act 2006Notes | 173up to $500m, 35% between $500m-$700m, and 20% over $700m.192Colorado Department of Law Press Release, ‘Colorado Settles Rocky Mountain ArsenalSuit’ (29 May 2008).193Todd Hartman, ‘Mining companies agree to $20.5 million settlement’ Rocky MountainNews (1 July 2008).194Ibid.195Roger Cowe, ‘Rio Tinto feels pinch’ The Guardian (13 May 1999).196Statement by David Russell (Solicitor’s letter to Robert Wilson, Executive Chairman ofRio Tinto 7 October 1999) (accessed Nov 2009).197Ibid.198Ibid.199Ibid.200BBC News, ‘Claims review for smelter campaigners’ (25 January 2002).201Rio Tinto, ‘Media Briefing: Capper Pass Claims Review Scheme - all claims determined’(23 July 2008).Chapter 4202PricewaterhouseCoopers, ‘Surveys Find Many Consumers Hold Companies Responsiblefor Their Actions’ (30 September 1999), quoted in D Neef, Managing Corporate Reputationand Risk: A Strategic Approach Using Knowledge Management, pp. 36-37.203William Baue, ‘Spreading SRI: Goldman Sachs Adds Its Own Twist in Social and EnvironmentalAssessment’ Social Funds (5 October 2005).204Stewart Lewis, ‘Building Stakeholder Relations’ from Ipsos, ‘Corporate Reputation: ConnectingFantasies with Reality’ (March 2006).205Darrell Bricker, ‘The Resiliency Concept’, from Ipsos, ‘Corporate Reputation: ConnectingFantasies with Reality’ (March 2006).206D Neef, Managing Corporate Reputation and Risk: A Strategic Approach Using KnowledgeManagement, p. 24.207John Browne, ‘Companies need more than just ‘spin’ to measure up to new corporatereputation demands’, www.vnunet.com (2 November 1999).208S Sheikh, A Guide to the Companies Act 2006, p. 3.AnnexesAnnex 1209s 395 Companies Act 2006. Quoted companies are now required to prepare their consolidatedaccounts in accordance with IAS standards (see Annex 1.2.1 for further details),but in the case of individual accounts they have the choice of Companies Act 2006 or IASstandards. Where the directors of a company prepare IAS individual accounts, they muststate as such in the notes to the accounts (s 397 Companies Act 2006).210BERR, ‘Companies Act 2006 Table of Commencement Dates’.211s 417(2) Companies Act 2006. Section 172 Companies Act 2006 provides that a directorof a company must act in the way he considers, in good faith, would be most likely topromote the success of the company for the benefit of its members as a whole, and in doingso have regard (amongst other matters) to — (a) the likely consequences of any decisionin the long term; (b) the interests of the company’s employees; (c) the need to foster thecompany’s business relationships with suppliers, customers and others; (d) the impact ofthe company’s operations on the community and the environment; (e) the desirability ofthe company maintaining a reputation for high standards of business conduct; and (f) theneed to act fairly as between members of the company.212Unless the company is subject to the small companies’ regime: if it qualifies as ‘small’,or if it is a parent if its group qualifies as ‘small’, so long as specific exceptions do not apply(s 381 Companies Act 2006). A company is ‘small’ if it satisfies two of the following conditions:turnover not more than £5.6 million; balance sheet total not more than £2.8 million;number of employees not more than 50 (s 382 Companies Act 2006). A parent companyis ‘small’ if its group satisfies two of the following conditions: aggregate turnover not morethan £5.6 million net (or £6.72 million gross); aggregate balance sheet total not more than£2.8 million net (or £3.36 million gross); aggregate number of employees not more than 50(s 383 Companies Act 2006). However, no company can be subject to the small companiesregime if it is a: public company; insurance, banking, e-money, ISD investment or UCITSmanagement company; or a member of an ineligible group of companies (s 384 CompaniesAct 2006).213s 395(2) Companies Act 2006 provides that ‘quoted company’ is defined as “a companywhose equity share capital (a) has been included in the official list in accordance with theprovisions of Part 6 of the Financial Services and Markets Act 2000, or (b) is officially listedin an EEA State, or (c) is admitted to dealing on either the New York Stock Exchange or theexchange known as Nasdaq”.214For example, if a mining company is operating in an area where its presence is contestedand resisted by local communities, and there is some chance that they will be forced towithdraw or significantly modify operations, this would be a ‘social issue’ that is also abusiness issue – it is a major factor ‘likely to affect the future development, performance andposition of the company’s business’. See the analysis on ‘social licence to operate’ in Section3.1.2 above for further details and examples.215Again, to the extent necessary for an understanding of the development, performance orposition of the company’s business.