Page 168 - E2 Integrated Workbook STUDENT 2018
P. 168
Chapter 12
4.2 Committees
Another important requirement of the UK Corporate Governance code is the
development of various committees, within which NEDs play key roles. These
committees are:
Remuneration – to determine the remuneration packages for the individual
executive directors.
Nomination – to bring independence and objectivity to the selection and recruitment
of board members.
Audit – responsible for recommending the appointment and removal of the external
auditors and overseeing the work carried out by the internal auditors.
The audit committee helps to ensure the independence of both the external and
internal auditors and provides a whistle blowing facility within the company where
members of staff can report issues in a confidential manner. This committee is made
up of 100% NEDs, one of which must have recent financial experience.
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