§ Mr. Austin MitchellTo ask the Secretary of State for Trade and Industry if he will introduce legislation under which shareholders would be specifically required to fix director remuneration.
§ Mr. RedwoodDirectors' remuneration for executive services involves the negotiation of detailed contracts. The body of shareholders of most public companies cannot easily perform this function which is usually best undertaken by the company's board of directors. In carrying out this function the directors must have regard to their legal duties to the company, the requirements of the Companies Act 1985 and the fact that they will in any case be held to account by the shareholders. Shareholders have a right to inspect director's contracts and to dismiss directors if they do not approve of their action.