For Part 4 (employee involvement) substitute -

"Part 4 Engagement with employees, suppliers, customers and others

11. Engagement with employees

(1) Unless the company is exempted under paragraph 11A, the directors’ report for a financial year must contain a statement -

(a) describing the action that has been taken during the financial year to introduce, maintain or develop arrangements aimed at -

(i) providing employees systematically with information on matters of concern to them as employees,

(ii) consulting employees or their representatives on a regular basis so that the views of employees can be taken into account in making decisions which are likely to affect their interests,

(iii) encouraging the involvement of employees in the company’s performance through an employees’ share scheme or by some other means, and

(iv) achieving a common awareness on the part of all employees of the financial and economic factors affecting the performance of the company, and

(b) summarising -

(i) how the directors have engaged with employees, and

(ii) how the directors have had regard to employee interests, and the effect of that regard, including on the principal decisions taken by the company during the financial year.