CORPORATIONS ACT 2001 - SECT 206L Remuneration recommendation by remuneration consultants

CORPORATIONS ACT 2001 - SECT 206L

  (1)   This section applies to a remuneration recommendation made by a remuneration consultant in relation to one or more members of the key management personnel for a company that is a disclosing entity.

  (2)   The remuneration consultant must provide the recommendation directly to either or both of the following:

  (a)   the directors of the company;

  (b)   the members of the remuneration committee (if any).

  (3)   However, the remuneration consultant must not provide the recommendation to a person who is an executive director of the company unless all the directors of the company are executive directors of the company.

  (4)   The remuneration consultant must not provide the recommendation to a person who is neither a director of the company nor a member of the remuneration committee.

  (5)   If the remuneration consultant contravenes subsection   (2) the remuneration consultant is not guilty of an offence. This does not prevent the remuneration consultant from being guilty of an offence for contravening subsection   (3) or (4).

Note:   Subsection   1311(1) makes it an offence for the remuneration consultant to contravene subsection   (3) or (4).

  (6)   This section does not prevent someone other than the remuneration consultant from providing the recommendation to a person who is neither a director of the company nor a member of the remuneration committee.