Draft norms on new Company Law make companies to disclose management’s pay
As per norms stipulated in the second set draft rules for the new company law, listed firms have been mandated to disclose in the board’s report the ratio of the remuneration of each director to the median remuneration of employees.
The new company law seeks to improve the regulatory framework around disclosure of managerial remuneration.
The new rules also prohibit companies from issuing shares with differentiated rights as to voting, dividend or otherwise unless certain conditions are fulfilled. A key condition is that shares with differential rights should not exceed 25% of the post issue paid up capital.
It has also been stipulated that the company should have a 10% dividend payment track record for the last 3 financial years immediately preceding the financial year in which such shares are to be issued.
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Month: Current Affairs - September, 2013