PUBLIC LISTED COMPANIES (Disclosures of annual incomes and perks of directors and executives)

Mr Chiam See Tong asked the Minister for Finance whether he will make it a legal requirement for directors and executives of publicly listed companies to make detailed disclosures of their annual incomes and perks and/or cash compensations.

The Minister for Finance (Dr Richard Hu Tsu Tau): Mr Speaker, Sir, the Ninth Schedule to the Companies Act already provides for the disclosure of directors' renumeration not only for public-listed companies but for all companies. The audited accounts of a company presented to shareholders at the company's Annual General Meeting must disclose the total amount paid to directors as remuneration for their services inclusive of fees, percentages, bonuses and commissions or other emoluments. Should a shareholder require further details or clarification, he is entitled to question the directors at the company's Annual General Meeting.

Similarly, there is nothing to prevent shareholders from querying directors at the Annual General Meeting on the emoluments and perks paid to the senior management of the companies.

In addition to the Ninth Schedule requirement, section 164A of the Act provides that shareholders may at any time by notice require the company to disclose the emoluments and other benefits received by the directors.

There is therefore already in existence an adequate framework for the disclosure of directors' emoluments. There is therefore no need for further legislation in this area at this point of time.

Mr Chiam See Tong: Sir, does the Minister agree that in fact the Ninth Schedule gives only the remunerations of executive and non-executive directors, all lumped together and not the detailed remunerations?

Dr Richard Hu Tsu Tau: Yes, Sir, I am well aware of that. As far as I am aware, there is no great public pressure for detailed disclosure of individual director's emoluments. If the Member believes that this is so, I think he will need to demonstrate that this is indeed the case.

Mr Chiam See Tong: Is the Minister aware that in fact there is a move in England to change their law to make directors release details of their remunerations?

Dr Richard Hu Tsu Tau: I do not think we are concerned at this point of time over legislation in other countries.