Financial Risk Manager Part 1

Explanation

Option C is correct because directors' remuneration is governed by the company's constitution (articles of association) and corporate governance principles. Directors cannot simply award themselves salaries arbitrarily (Option A is incorrect). Directors are not required to receive salaries like junior employees (Option B is incorrect) - many directors, especially non-executive directors, may receive fees rather than salaries. Option D is incorrect because directors' remuneration is typically set by the remuneration committee or board, not the HR department.

Key Points:

• Directors' remuneration must be properly authorized and disclosed
• The company's constitution typically outlines the framework for director compensation
• Corporate governance best practices emphasize transparency and accountability in director remuneration
• Remuneration committees play a crucial role in setting appropriate compensation that aligns with company performance and shareholder interests