Directors of smal companies should not be obliged to disclose their remuneration

Brendan Burgess

Brendan Burgess

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This has come up on askaboutmoney before and I see from an email from Deloittes, that some change are being proposed:

"• Introduction of a specific reporting regime for micro companies including exempting micro companies from disclosing directors’ remuneration;

• A significant increase in the size thresholds for small and medium companies to the maxima allowed by the EU Accounting directive. The thresholds by company size in the Bill with the current thresholds where different in red are:


Micro Small Medium
Net turnover €700,000 €12,000,000 (€8.8m) €40,000,000 (€20m)
Balance sheet total €350,000 € 6,000,000 (4.4m) €20,000,000 (€10m)
Employees 10 50 250 "

Tommy McGibney had an article on the existing limits here

Companies Act 2014 – A Nasty Shock for Small Company Directors

"However, it will come as a nasty shock to family companies with one or two directors, most commonly husband & wife. In such cases, the Directors’ Remuneration figure will clearly link to an identifiable individual or couple.

I’m amazed that the new Act provides no safeguards against the obvious privacy breach that this measure will entail for small company directors."


But what is being proposed in the new Bill?

Is it an EU requirement? Could the Dáil bring in some exemption for companies with only one or two directors?
 
Most people I know opt for a non-filing structure and completely avoid the "profits at Gordon Gekko Limited fell by 23%" headlines. However, this is under threat.
 
When I originally wrote the piece that Brendan linked above, a few people mentioned to me that I should bring the privacy issue to the attention of the Data Protection Commissioner - which unfortunately I have never gotten around to doing in the meantime. I wonder what their response would be?
 
Hi Tommy

I wouldn't waste too much time wondering about it.

Just bring it to their attention. They may well make a submission to the Oireachtas on it.

Brendan
 
Just wondering if anyone has come up against this yet - the 2014 companies acts are requiring notes to the financial statements detailing directors pay - even for small companies - is this absolutely necessary ? is this not a complete invasion of privacy for all the small businesses around the country ?
 
Thanks for fixing my post.
So what are the practical implications of ignoring these requirements I wonder.
Particularly since they are blatantly unfair and will probably be ruled as such by the data protection crowd.
 
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