remuneration of directors

  

Definition

Executive and non-executive directors may be compensated by fee, salary, and/or use of the firm's property as a matter of agreement between them and the firm. However, the amount of remuneration cannot exceed the amount specified in the articles of association, and the stockholders (shareholders) may sue the directors if they exceed the stated amount or pay themselves too big a share of profit, instead of distributing it as dividends. It is generally illegal for firms to compensate directors for loss of office without the approval of shareholders.

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