§ Lord Vinsonasked Her Majesty's Government:
What steps they will take to ensure that it be made a condition of listing on the Stock Exchange that directors' contracts (and thereby salaries) to be valid in law shall be approved at the annual general meeting of that company.
§ Lord StrathclydeThe Government are taking no steps to seek a change to the listing rules, which are a matter for the Stock Exchange. The Government share the view of the Cadbury Committee that it would be impractical to make the terms of directors' contracts generally subject to shareholder approval; it is however considering the Cadbury Committee's recommendation that the Companies Act should be amended to reduce from five years to three the maximum duration of directors' service contracts before shareholder approval is required.