Nomination committee
A nomination committee supports the board’s arrangements for appointments, succession and the skills and composition needed for effective governance. It can identify gaps, oversee a suitable recruitment process and recommend candidates. Its remit, membership and authority depend on the applicable code and organisational arrangements. Diversity, independence, competence and conflicts of interest all require attention.
Worked example
A board expects two directors to retire. Its nomination committee assesses the skills that will be lost, considers diversity and independence needs and oversees a documented search before recommending appointments through the required process.
Common mistake
Do not treat nomination as automatically giving the committee the legal power to appoint every director, or focus only on personal contacts rather than the board’s needs.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Supporting | September 2026–June 2027 |
| ACCA | SBL | Direct | September 2026–June 2027 |
| FIA | FBT | Supporting | September 2026–June 2027 |