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Chwiliad Uwch

Enterprise and Regulatory Reform Act 2013

Summary and Background

540.Under the CA 2006, quoted companies(11) are required to produce a directors’ remuneration report (section 420) as part of the annual reports and accounts, and to put this directors’ remuneration report to the company’s members at the annual general meeting. At the meeting, shareholders are asked to approve the report by means of an ordinary resolution (section 439). This resolution is ‘advisory’ in nature and the company is not required by law to take any action in response to the vote. As such, no individual directors’ pay is contingent on the outcome of the vote.

11

Quoted company, as defined in section 385 of the Companies Act 2006.

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Asesiadau Effaith

Impact Assessments generally accompany all UK Government interventions of a regulatory nature that affect the private sector, civil society organisations and public services. They apply regardless of whether the regulation originates from a domestic or international source and can accompany primary (Acts etc) and secondary legislation (SIs). An Impact Assessment allows those with an interest in the policy area to understand:

  • Why the government is proposing to intervene;
  • The main options the government is considering, and which one is preferred;
  • How and to what extent new policies may impact on them; and,
  • The estimated costs and benefits of proposed measures.