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<h1>Eligibility for Company Schemes: Compensation Committee's Role and Institutional Directors' Contract Requirements Under Section 42</h1> An employee's eligibility to participate in a company's schemes is determined by the compensation committee. For employees who are directors nominated by an institution, the contract between the institution and the director must specify if grants can be accepted by the director, ensure grants are not renounced to the institution, and outline conditions for accepting fees and incentives. The institution must file this contract with the company, which then files it with recognized stock exchanges. The director must present the contract at the first board meeting attended after nomination.