Skip to content

CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board Effectiveness and Building Better Boards

Narmada Infra Ltd, a listed public company, has framed a remuneration policy to link pay with performance for directors, KMP and senior management. Under section 178, what must be done with this policy?

The policy must be placed on the company's website, if any, and its salient features, any changes and the web address must be disclosed in the Board's report. This is the proviso to section 178(4); the text requires no Registrar filing or special resolution.

  1. AKeep it confidential and share it only with the auditors
  2. BPlace it on the company's website, if any, and disclose its salient features, changes and web address in the Board's reportCorrect
  3. CFile it with the Registrar within thirty days of adoption
  4. DObtain approval of the policy by a special resolution every year

Explanation

The proviso to section 178(4) requires the policy to be placed on the company's website, if any, and its salient features and changes, with the web address, to be disclosed in the Board's report. The text does not mention Registrar filing or annual special resolutions.

Did you get it right without looking?

One question tells you little. A timed set on Board Effectiveness and Building Better Boards shows your real accuracy, how long you take and where you lose marks.

Practise Board Effectiveness and Building Better BoardsFree diagnostic mock

More Board Effectiveness and Building Better Boards questions