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Banking Bill

Amendment 20 20: After Clause 21, insert the following new Clause— ““Remuneration committee (1) The Treasury may by order make provision concerning a remuneration committee in consequence of and furtherance of this Part and of Part 3 of this Act. (2) An order (““a remuneration order””) under this section— (a) shall be made by statutory instrument, and (b) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament. (3) Before making a remuneration order, the Treasury shall consult— (a) the FSA; and (b) the Bank of England. (4) The order may amend or modify the effect of an enactment passed before the commencement of this Act. (5) The order shall enable the Treasury to appoint a person (with his consent) (““the appointee””) to sit as a full member of the remuneration committee of a bank, notwithstanding any provision in its constitution or any other agreement or arrangement. (6) The person appointed under this section shall enjoy the immunity of an agent under section 234(2)(a) of this Act, save for the general duties of a director under Chapters 2 and 3 and Part 10 of the Companies Act 2006. (7) A remuneration order may provide that entitlement to payment of any remuneration recommended by a remuneration committee shall arise only, notwithstanding section 439(5) of the Companies Act 2006, if it was approved— (a) by the appointee, or (b) in the absence of his approval, by the FSA. (8) In this section ““remuneration committee”” means— (a) in the case of a quoted company, any committee or body which prepares or drafts a remuneration report under sections 420 and 421 of the Companies Act 2006 (duty to prepare, and contents of, directors remuneration report) intended to be presented to the shareholders meeting as the directors’ remuneration report under section 439 of that Act (quoted companies: members’ approval of directors’ remuneration report); or (b) in the case of an unquoted bank, any committee or other body which prepares such similar information and material regarding remuneration as shall be specified by the order; or (c) in the absence of any such committee or body, the board of directors itself.””