Directors of companies should ensure that they are aware of the increased disclosure requirements in relation to their remuneration under Companies Act 2014.
Section 305 of Companies Act 2014 covers the disclosure of directors’ remuneration with Section 306 providing some supplemental provisions to Section 305. A considerable change under the new Act relates to group’s. Section 305 requires that company accounts disclosure not only the remuneration received by the director in that company, but also remuneration paid by or receivable from:
This will increase substantially the disclosure requirements on many group companies.
For smaller entities that are availing of the exemptions to file abridged accounts with the Companies Registration Office, there is now a requirement to include directors’ remuneration in these abridged accounts. Under the old Companies Act this information was not required to be disclosed in the abridged accounts. As the accounts will become publically available once filed with CRO this will be an unwelcomed change for many directors of smaller entities.
Directors should ensure that they review these requirements with their auditors/accountants before filing their next set of accounts with CRO.
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