Duty to prepare directors' remuneration report
(1) The directors of a quoted company ... must prepare a directors' remuneration report for each financial year of the company.
(2) In the case of failure to comply with the requirement to prepare a directors' remuneration report, every person who—
(a) was a director of the company immediately before the end of the period for filing accounts and reports for the financial year in question, and
(b) failed to take all reasonable steps for securing compliance with that requirement,
commits an offence.
(3) A person guilty of an offence under this section is liable—
(a) on conviction on indictment, to a fine;
(b) on summary conviction, to a fine not exceeding the statutory maximum.
Contents of directors' remuneration report
(1) The Secretary of State may make provision by regulations as to—
(a) the information that must be contained in a directors' remuneration report,
(b) how information is to be set out in the report, and
(c) what is to be the auditable part of the report.
(2) Without prejudice to the generality of this power, the regulations may make any such provision as was made, immediately before the commencement of this Part, by Schedule 7A to the Companies Act 1985 (c. 6).
(2A) The regulations must provide that any information required to be included in the report as to the policy of the company with respect to the making of remuneration payments and payments for loss of office (within the meaning of Chapter 4A of Part 10) is to be set out in a separate part of the report.
(3) It is the duty of—
(a) any director of a company, and
(b) any person who is or has at any time in the preceding five years been a director of the company,
to give notice to the company of such matters relating to himself as may be necessary for the purposes of regulations under this section.
(4) A person who makes default in complying with subsection (3) commits an offence and is liable on summary conviction to a fine not exceeding level 3 on the standard scale.
Approval and signing of directors' remuneration report
(1) The directors' remuneration report must be approved by the board of directors and signed on behalf of the board by a director or the secretary of the company.
(2) If a directors' remuneration report is approved that does not comply with the requirements of this Act, every director of the company who—
(a) knew that it did not comply, or was reckless as to whether it complied, and
(b) failed to take reasonable steps to secure compliance with those requirements or, as the case may be, to prevent the report from being approved,
commits an offence.
(3) A person guilty of an offence under this section is liable—
(a) on conviction on indictment, to a fine;
(b) on summary conviction, to a fine not exceeding the statutory maximum.
Revisions to directors' remuneration policy
(1) The directors' remuneration policy contained in a company's directors' remuneration report may be revised.
(2) Any such revision must be approved by the board of directors.
(3) The policy as so revised must be set out in a document signed on behalf of the board by a director or the secretary of the company.
(4) Regulations under section 421(1) may make provision as to—
(a) the information that must be contained in a document setting out a revised directors' remuneration policy, and
(b) how information is to be set out in the document.
(5) Sections 422(2) and (3), 454, 456 and 463 apply in relation to such a document as they apply in relation to a directors' remuneration report.
(6) In this section, “directors' remuneration policy” means the policy of a company with respect to the matters mentioned in section 421(2A).
Contains public sector information licensed under the Open Government Licence v3.0 (legislation.gov.uk).
