I do know the nomination committee is the one that appoints directors I just read somewhere that the CEO also has his say in the appointment of the NED’s is it true? Also is the Chairman a NED?
Chairman is ideally a ned although I saw a set of accounts recently where the Chair was not specifically identified as a ned.
The nominations committee nominate directors, the members ( in theory ) appoint but in practice the directors will appoint and that will be later confirmed by the members.
It is appropriate for the CEO or other executive board member to be involved in the nomination committee because the nominee will have to work closely with the executive board members
In an article called ‘Independence as a concept in corporate governance’ in http://www.accaglobal.com/content/dam/acca/global/pdf/sa_sept11_independence.pdf, there is a statement saying “NEDs are appointed by shareholders in order to represent their interests on company boards” – I am confused – who appoints NED’? Or is it just that the committee/ directors propose them and shareholders approve the appointment, but do not actively get involved in the decisionmaking process? Thanks!
I quote your post “NEDs are appointed by shareholders” – so where’s the confusion? Pretty much ALL directors are found by the nominations committee. They are invited to join the board. But the appointment of EVERY director is by the ordinary resolution passed by the shareholders in a general meting of the company. But even that’s not true! Many directors are appointed by the existing board of directors to fill a vacancy on the board. That appointee is then confirmed in appointment by the shareholders passing an ordinary resolution in a general meeting
hihi, yes, probably nervous due to exam coming up. thanks for the fast reply
Welcome, and good luck on Wednesday
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