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Directors’ emoluments

Sums of money and benefits in kind received by directors. These may include fees, salaries for acting as director (or in some other capacity for the company), the use of company property, and certain expense allowances. The Companies Act requires that the accounts of a company shall distinguish, inter alia, between amounts received in respect of services as director of the company or any of its subsidiaries, and remuneration received for management of the company’s affairs or the affairs of any subsidiary. They also require that directors’ emoluments should be distinguished from directors’ pensions or compensation for loss of sions or compensation for loss of office. The 1967 Act required that details be given of the number of directors receiving salaries within certain ranges, for instance fO-£5,000, £5,000-£10,000. etc. This also applied to highly paid persons who are not directors. The 1%7 Act did not apply to independent companies where the total emoluments were less than £7,500.

Reference: The Penguin Business Dictionary, 3rd edt.