The Government has introduced amendments to the Enterprise and Regulatory Reform Bill, to include new clauses amending the Companies Act 2006 regarding the disclosure and governance of directors’ remuneration. The clauses add sections to the Companies Act 2006 dealing with the proposed binding shareholder vote on future directors’ remuneration policy, including provisions that will subject any remuneration or termination payments that breach the policy to a statutory trust in favour of the company, the payer or former shareholders (as appropriate). Losses arising from non-compliant payments will also be recoverable from any authorising directors of a paying company, under statutory joint and several indemnities.
This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
