ANN CROTTY: The trouble with Mpact’s way of paying its directors
The regulator may not accept the way Mpact has managed to arrange payment for its directors
It shouldn’t have been surprising, given that Caxton is involved, but Mpact’s precedent-setting response to being prohibited from paying its nonexecutive directors (NEDs) has sent a few shock waves through the investment community. Or at least that shrinking portion of the community that is concerned with corporate governance issues.
It has to be stressed that what Mpact has done is entirely legal. The appointment of all the NEDs of the listed entity, Mpact Ltd, to the board of the wholly owned operating subsidiary Mpact Operations means the NEDs will be able to receive fees. The good news is that while businesses are under no obligation to disclose any details of those fees, a company spokesperson assured the FM that details would be made known...
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