The ED also proposes minor changes in the following areas:
- holding of general meetings
- remuneration reporting
- auditor appointment for companies limited by guarantee
- changes in financial years.
The ED is part of the government’s efforts to reduce compliance costs for business and benefit business productivity generally. It is expected to be introduced sometime in the 2014 Autumn/Winter sittings of Parliament.
- Change S254T dividend test to a pure solvency test.
- Introduce S254TA to reduce risk dividend also requires capital reduction approval.
- Disclose remuneration governance framework in annual report.
- Unlisted disclosing entities no longer prepare a remuneration report.
- Certain companies limited by guarantee need not appoint auditor.