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Investors and stakeholders may now get a better picture on how much the senior management of a company gets as remuneration.
Listed companies have been mandated to disclose in the board’s report the ratio of the remuneration of each director to the median remuneration of employees.
This has been stipulated in the draft norms for the new company law that seeks to improve the regulatory framework around disclosure of managerial remuneration.
The Corporate Affairs Ministry on Friday released the second set of draft rules covering nine chapters under the company law.
Comments on these draft rules have been invited by October 19.
The new norms also forbid companies from issuing shares with differentiated rights as to voting, dividend or otherwise unless certain conditions are met. A key condition is that shares with differential rights should not exceed 25 per cent of the post issue paid up capital.
Also, the company should have a 10 per cent dividend payment track record for the last three financial years immediately proceeding the financial year in which such shares are to be issued.
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