Companies Act 2014 section 306

Supplemental provisions in relation to section 305

Section 306 provides supplementary rules for the disclosure of directors' remuneration under section 305, covering connected persons, timing of disclosure, apportionment of payments, auditor duties, subsidiary undertakings, and the definition of director.

• Amounts disclosed under section 305 must include all sums paid or payable to persons connected with the director, and must capture all sums receivable for the financial year regardless of when actually paid
• Where amounts were initially excluded because the director was liable to account for them but that liability is later released or not enforced within two years, or where expense allowances become chargeable to income tax after year-end, those sums must be disclosed in the first practicable financial statements and shown separately
• If the company's financial statements do not comply with the disclosure requirements, the statutory auditors must include the required particulars in their audit report to the extent they are reasonably able to do so
• The term "director" for the purposes of these provisions includes shadow directors and de facto directors, and references to subsidiary undertakings extend to any body corporate where the director was nominated by the company

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