Keyword Analysis & Research: directors remuneration

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Frequently Asked Questions

What is the process of directors' remuneration?

The process of directors' remuneration came about because of shareholder concerns that directors were rewarding themselves large salaries despite showing poor profits or revenue . Therefore, the process was initiated by which shareholders were able to agree to or reject fees paid to directors in general.

Do you have to disclose Directors' remuneration in your financial statements?

The Companies Act requires certain companies to include the disclosure of directors' remuneration in the financial statements. Many companies have struggled with this requirement and for that reason we have collated a number of questions and answers. Did you find this useful?

How long can a directors' remuneration policy last?

If a company already had in existence a remuneration policy on 10th June 2019, that policy can continue for the rest of its three-year period. The directors’ remuneration policy must also contain a future policy table which sets out in detail each part of the package that makes up a directors’ remuneration.

How to show director's remuneration in income statement?

Director’s Remuneration Shown in the Income Statement. If the director is not an employee of the company then a separate account may be created to book all director remuneration related payments. In case if the director is an employee then all expenses related to him/her may be included under the head “Employee Benefits A/C”.

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