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Chapter 3

3.1 Importance of committees

Board sub-committees are a generally accepted part of board operations.

Positives:

 reduces board workload and enables them to improve focus on other issues.

 creates structures that can use inherent expertise to improve decisions in key
areas.

 communicates to shareholders that directors take these issues seriously.

 increase in shareholder confidence.

 communicates to stakeholders the importance of remuneration and risk.

 satisfy requirements of the UK Corporate Governance Code (2010) (or other
governance requirements).

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