Director’s duty to shareholders to warrant remuneration

Author: Sarah Hawes, James Kirk (

Categories: Governance
Tags: Directors Duties, Shareholders
There is a lot negative press and public anger perhaps, directed at directors of large listed companies, in particular when you look at bold numbers out of context, they can look like large sums of money. And at the moment, other than potentially voting a director off a board, shareholders have not got any other way necessarily to directly influence the pay in terms and conditions which their directors receive. Transparency is important for shareholders to have information about who is running their company and investing their money and for the public at large, it breeds trust. I think one of the most fundamental changes from the Companies Act 1985 to the Companies Act 2006 was to codify directors’ duties so they’re all written down in one place in a reasonably accessible form now. So directors can and should all be aware of their duties under the Act.
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