P2 - 13. Regulation and disclosure

Question 1

What are the seven GDPR principles?

Answer 1

Lawfulness, fairness and transparency
Purpose limitation
Data minimisation
Accuracy
Storage limitation
Integrity and confidentiality (security)
Accountability

Question 2

GDPR is supplemented in the UK by which additional legislation?

Answer 2

Data Protection Act 2018, Privacy and Electronic Communications Regulations

Question 3

All companies are under an obligation to disclose which types of information:

Answer 3

• constitution and any changes;
• directors and company secretaries;
• changes of registered details including company name, registered office or SAIL address;
• share capital;
• accounts;
• mortgages and charges; and
• persons with significant control.

Question 4

For a quoted company, what must the strategic report must also include (CA2006 s. 414C (7–10)) information on?

Answer 4

• main trends and factors likely to affect future development, performance or position of the company;
• environmental matters;
• company employees;
• social and community interests;
• the company’s strategy;
• the company’s business model;
• the genders of its directors, senior managers and employees; and
• those third parties with which the company has contracts or arrangements essential to its business.

Question 5

Among other disclosures what should the directors remuneration report include?

Answer 5

• statement by the chair of remuneration committee;
• single total figure table of remuneration for each director;
• details of any payments to past directors;
• where the directors’ remuneration policy is not being put to a resolution at the AGM, performance targets for the financial year;
• details of remuneration committee including an assessment of independence;
• a statement of voting on the remuneration report and remuneration policy in the previous year; and
• a separate section on the remuneration policy.

Question 6

What is the notice period for traded companies to convene a general meeting?

Answer 6

CA2006 s. 307A as follows:
* general meetings where specified conditions met: 14 days;
* all other general meetings: 21 days.

Question 7

Who should prepare a directors remuneration report?

Answer 7

The directors of a quoted company