'Director know how' is a monthly article which highlights key rule changes, proposed changes and market updates so that you know what is coming down the track.
ICSA revises its guidance on induction for directors
The Institute of Chartered Secretaries and Administrators (ICSA) has revised its guidance on induction for directors, highlighting two further aims of the induction process – an understanding of the role of a director and the framework within which the board operates. ICSA is in the process of updating all of its guidance notes – we will let you know when they are available.
Listed companies to report on greenhouse gases
The Department of Environment, Food and Rural Affairs (DEFRA) has issued a consultation on draft regulations, which will require companies listed on the Main List ('quoted companies' as defined in Companies Act 2006) to report on their greenhouse gas emissions for reporting years ending after 6 April 2013. The law firm Wedlake Bell has written a brief article that outlines the regulations. Our Corporate Governance Expert Group responded to a previous consultation on this in July 2011and will be responding to the current one too.
Executive pay proposals toned down
The Department for Business, Innovation and Skills has published its draft regulations on revised remuneration reporting, which propose that the Directors' Remuneration Report will include:
- A future remuneration policy report, which will be required when a shareholder binding vote is proposed, at least every three years.
- An implementation report, which will be required annually and will be subject to an advisory vote.
This will apply to all companies on the Main List (ie 'quoted companies' as defined by Companies Act 2006) and will apply for financial year ends after October 2013.
These proposals an improvement on original proposals consulted on in April 2012, which proposed an annual binding vote on remuneration policy (you can access our response by clicking here). Our Corporate Governance and Share Schemes Expert Groups will be reviewing this and responding shortly.