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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Corporate Governance
Hello sir, I can’t understand if the NED’s committees can consist of already existing NED’s or new should be appointed? For example, if the board of directors consists of 5 executive directors and 5 NED’s, can the NED’s be members of the audit committee or the remuneration committee or the nomination committee? Thank you very much in advance.
The NEDS have to be members of those sub-committees, and the existing ones are fine.
Hello again sir. Can shareholders be NED’s for an audit committee and if not why not? Thank you very much.
NEDs can be shareholders, but if they are going to be independent NEDs, large shareholdings would be compromising and they would then probably notmbe considered independent.