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.