PART IIREGULATION OF CONTROLLED AND INFLUENCED COMPANIES
Requirements applicable to regulated companies5
1
A regulated company shall not—
a
in respect of the carrying out of any relevant duty, pay to a regulated director remuneration in excess of the maximum amount;
b
in respect of expenditure on travelling or subsistence in connection with the carrying out of a relevant duty, pay to a regulated director an allowance, or reimburse expenses, in excess of the maximum amount;
c
publish any material which the relevant authority would be prohibited from publishing by section 2 of the Local Government Act 19867.
2
Where a director becomes disqualified for membership of a local authority otherwise than by being employed by a local authority or a controlled company, the company shall make such arrangements as may be necessary for a resolution to be moved for his removal in accordance with section 303 of the 1985 Act.
3
In this article—
a
for the purposes of paragraph (1)(a), the maximum amount is the greatest amount which would for the time being be payable by the relevant authority in respect of a comparable duty performed on behalf of that authority, less any amount paid by that authority in respect of the relevant duty to the regulated director in question;
b
for the purposes of paragraph (1)(b), the maximum amount in relation to a director is the maximum amount of travelling or subsistence allowance which would for the time being be payable to that director by the local authority of which he is a member if the relevant duty were an approved duty for the purposes of section 174 of the Local Government Act 19728;
c
“regulated director” means a director of the company who is also a member of a relevant authority; and
d
“relevant duty” means a duty carried out on behalf of the company.