A company shall not make to any director of the company any payment by way of compensation for loss of office, or as consideration for or in connection with his retirement from office, unless particulars with respect to the proposed payment and the amount have been disclosed to members of the company and the proposal is approved by the company.
Companies and Allied Matters Act 2020 · Part B · Chapter 11
Section 297Payment by company for loss of office to be approved
Cite as: Companies and Allied Matters Act 2020, section 297
What this section means
From the guide: Director pay, loans to directors and loss-of-office payments under CAMA 2020
- Payments for loss of office must be disclosed to members and approved (section 297).
- A company may not pay a director compensation for loss of office, or in connection with retirement, unless the details and amount have been disclosed to the members and the proposal approved by the company (section 297).
Read the whole subject
Source: Companies and Allied Matters Act 2020 (Act No. 3 of 2020), Official Gazette No. 124, Lagos, 10 August 2020. General information, not legal advice.