- This topic has 3 replies, 2 voices, and was last updated 2 years ago by Kim Smith.
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- June 25, 2021 at 3:46 pm #626305
The board should identify the independent NEDs in the annual report. Independence would be deemed to be affected if a director:
? is, or has been, an employee of the company or group within the last five years
? has received or receives remuneration from the company in addition to a director’s fee, participates in the company’s share option or a performance-related pay scheme, or is a member of the company’s pension scheme
Sir given the above conditions, I wanted to know if say a person retired 6years ago and is on the pension scheme of the company (because he served in the co till his retirement), can become an NED for that company?
June 25, 2021 at 5:31 pm #626325He could be a NED – he just wouldn’t be an independent NED (!)
June 26, 2021 at 2:00 am #626333Oh so you mean if they are non-independent NEDs then they will form part of the remaining half of board members; because the first half(and majority) needs to be of independent NEDs.
Am I understanding it correctly sir?
June 26, 2021 at 9:05 am #626360Yes – but remember it’s not statute/law – so compliance isn’t mandatory (see “comply and explain” in the notes).
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