| Commentary

15 Compensation for termination of appointment

| Commentary

15 Compensation for termination of appointment

It is not lawful for a company to make a payment for loss of office to a director of the company unless the payment has been approved by an ordinary resolution of the members of the company1. A company may not make a payment for loss of office to a director of its holding company unless the payment has been approved by an ordinary resolution of the members of each of those companies2. For these purposes, a ‘payment for loss of office’ broadly means3:

  1. 15.1

        any payment made to a director (or former director)

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