Payment Expenses And Service Contract Discussion

Payment Expenses And Service Contract Discussion
Payment Expenses And Service Contract Discussion
Payment, expenses and service contract 78
144 Must a director be paid? 78
145 Who determines the directors’ fees (if any) and terms
of their contracts (if any)? 78
146 Do the Inland Revenue and others treat the remuneration
of executive directors and non-executive directors in
the same way? 79
147 What part of a director’s fee is payable to a director
who resigns part-way through a year? 79
148 I am a director and the sole shareholder. Can I take as
much money out of the company as I like? 80
149 As well as being a director I own all the shares. I want to
pay out all the profits to myself as a salary or bonus. Will there
be any problems if I do this rather than pay a dividend? 80
150 My company faces financial difficulties. How much should
this be a factor in setting directors’ pay? 81
151 I am a director. What are my rights concerning the
reimbursement of expenses that I have incurred? 81
152 Must a director have a service contract? 82
Payment Expenses And Service Contract Discussion
153 I am an executive director and I do not have a service
contract. Should I have one? 82
xiv 501 QUESTIONS FOR COMPANY DIRECTORS AND COMPANY SECRETARIES
154 I am a non-executive director and I do not have a service
contract. Should I have one? 82
155 Are there any limits on the directors’ powers to agree the
terms of directors’ service contracts? 83
156 What things should be covered by a director’s service contract? 83
157 I have heard that long periods of notice are frowned upon.
Is this correct? 84
158 Is there a maximum period for which a director’s service
contract can run? 84
159 Who can inspect directors’ service contracts? 85
160 Where must a director’s service contract be kept and who
can insist on seeing it? 85
COMPANY SECRETARY
The position and the role 86
161 Is it compulsory for every company to have a company
secretary and might the requirement soon change? 86
162 Who chooses the company secretary? 86
163 Who can be the secretary of a public company? 87
164 Are there any exceptions to the requirement for the secretary
of a public company to be a member of one of the bodies
specified in the answer to the last question? 87
165 Who can be the secretary of a private company? 88
166 How has the office of company secretary developed
over the years? 89
167 What is the relationship between the company secretary
and the directors? 89
168 Are joint secretaries permitted? 90
169 Can the directors appoint a deputy or assistant secretary? 90
170 Does a company secretary who is also a director have an
enhanced role? 90
171 May the company secretary vote at a board meeting? 91
172 Can the company secretary insist on attending a board meeting? 91
173 What should the company secretary be paid? 91
xv
CONTENTS
Payment Expenses And Service Contract Discussion
174 What steps should be taken on the appointment of a
new company secretary? 92
175 We forgot to notify Companies House of my appointment
as company secretary. What should we do and am I the
company secretary? 92
176 I have just taken over as company secretary and things were
not in good order. What can I do to put things right? 93
Having a hard time figuring out how to do your assignment?
Ask our experts for help and get it done in no time!