New Directors' Regulations Now in Force

The Directors’ Remuneration Report Regulations 2002 (SI 2002 No 1986) are now in force. These Regulations exempt a quoted company from most of the requirements contained in Part 1 of Schedule 6 of the Companies Act 1985, including the condition that a company must produce certain information concerning directors’ remuneration by way of notes to the company’s accounts.

A quoted company is instead required to set out a large part of the information concerning directors’ remuneration in the directors’ remuneration report. The yearly report must be approved by the board of directors and signed on behalf of the directors by a director or the secretary of the company.

Part 1 of Schedule 6 will continue to apply to companies, which are not quoted, and Parts II and III of that Schedule will apply to both quoted and unquoted companies