The Companies Act 2006 - Disclosure by a director of his interest in company shares
Fri 21st September, 2007
Repeal of director’s duty to disclose interest in company shares
- Directors are no longer under an obligation to notify the company when they or their spouses or children acquire an interest in the shares of the company.
- The requirement to maintain a register of directors’ interests in company shares has been abolished along with the sanctions for non-compliance.
- Accordingly, the content of a director’s report no longer needs to include details of a director’s interest in company shares.
Prohibition on directors dealing in options in relation to company shares
- Directors, their spouses and children, are no longer prohibited from dealing in share options in relation to company shares.
Prohibition on tax-free payments to directors
- Companies may now pay their directors remuneration free of income tax.
Duty of directors to disclose their age
- The upper age limit for company directors is now abolished.
- A director may be appointed if he is over the age of 70 without shareholder approval and directors no longer need to vacate office upon reaching that age.
If you have any questions or require further information in respect of the above, please feel free to contact Ian Bloom or James Orloff at Ross & Craig.