Board of Directors Committees
A company's board of directors typically has several committees that are responsible for specific functions and report to the board.
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The audit committee plays a critical role in ensuring the corporation's financial integrity and consideration of legal and compliance issues. The primary objective is to ensure that the financial information reported by the company to shareholders is complete, accurate, reliable, relevant, and timely.
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The governance committee tries to ensure that the company adopts good corporate governance practices.
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The remuneration (compensation) committee develops and implements executive compensation policies. Incentives should be provided for actions that boost long-term share profitability and value.
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The nomination committee searches for and nominates board director candidates, and establishes the nomination policies and procedures.
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Other common committees include those responsible for overseeing management's activities in certain areas, such as mergers and acquisitions, legal matters, and risk management.
Subject 5. Board of Directors and Committees
ment has supplied the board with sufficient information for it to be fully informed and prepared to make the decision that are its responsibility, and to be able to adequately monitor and oversee the company's management. <span>Board of Directors Committees A company's board of directors typically has several committees that are responsible for specific functions and report to the board. The audit committee plays a critical role in ensuring the corporation's financial integrity and consideration of legal and compliance issues. The primary objective is to ensure that the financial information reported by the company to shareholders is complete, accurate, reliable, relevant, and timely. The governance committee tries to ensure that the company adopts good corporate governance practices. The remuneration (compensation) committee develops and implements executive compensation policies. Incentives should be provided for actions that boost long-term share profitability and value. The nomination committee searches for and nominates board director candidates, and establishes the nomination policies and procedures. Other common committees include those responsible for overseeing management's activities in certain areas, such as mergers and acquisitions, legal matters, and risk management. <span><body><html>
Summary
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