ACCA P1 Chapter 3 part a The Board of Directors
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Who sets the agenda of a board meeting? Chairman or CEO?
Any of the directors that has a topic that they wish to discuss with the other board members as a whole
OK?
If shareholder only approve ned appointment and executive director give recommendation than how independence of ned will be maintain???
Recruitment sub-committee work from the outline provided by the directors in looking for new directors.
They will most probably use the services of a recruitment agency and that agency will go head-hunting
The agency will report back to the recruitment sub-committee who will, in turn, put forward nominations to the full board with their own recommendations
There should be sufficient distance between the executive board and new directors, whether they are executive or non-executive, to satisfy your enquiring mind!
OK?
are these topics still tested in exams same way because if these were uploaded for december 2010 as well , it is mentioned again and again during lecture that things will be changed after the sitting and its june 2016. This small thing is bothering me a bit
The change that happened was that the title of the exam was amended to its current “Governance, Risk and Ethics”
Of course the notes and lectures are up to date – they’re fine for June (and September, and December) 2016 exams
If there are 14 members on a board, 7 EDs and 7 NEDs. To create the sub-committees, such as the Audit, Nominations, Remuneration, Ethics, Risks and CSR Committees. Will the members consists of the 7 NEDs? Or will more NEDs have to be recruited to make up a panel on these committees?
Out of the existing 7 neds
Luke, you’re correct! However, in the best interests of transparency both separate remuneration committees will (probably) take advice / guidance from a reputable recruitment agency
Sir, who appoints the directors of a company? is it the shareholders? But in reality it is the Board of Directors and they only seek the approval of the shareholder?
Am I right as per the video lecture?
Hi?
The lecturer said the remuneration committee (in which mostly are NEDs) decide the executives’ remuneration, however what confuses me is that, as mentioned in the video, the NEDs’ remuneration is in turn decided by the executives. It seems to me that it has the same drawbacks as ‘cross directorship’?evaluating each other’s performance? I hope i am making myself clear. 馃槢
Luke
The board and shareholders(both) should set the remuneration of the Non Executive Directors….. only basic salary no performance related element is included…..