CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Stakeholders Rights
Zenith Motors Ltd, a listed public company, has framed a remuneration policy under Section 178(3). What must it do regarding disclosure of that policy?
The remuneration policy must be placed on the company's website, if it has one, and the Board's report must disclose its salient features, any changes made, and the web address of the policy. Keeping it confidential or sharing it only with committee members would breach Section 178.
- AKeep it confidential to protect executive pay information
- BPlace it on the company's website, if any, and disclose its salient features, changes and web address in the Board's reportCorrect
- CDisclose it only to the NRC members
- DFile it with the Tribunal annually
Explanation
The proviso to Section 178(4) requires the policy to be placed on the website, if any, and its salient features, changes and the web address to be disclosed in the Board's report. Confidentiality or limited circulation contradicts this transparency requirement.
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