Corporate governance

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November 30, 2019 at 3:04 pm #554248
vavneetb
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Hi

I am very confused, in composition of audit committee:
-There should be equal number of ED and NED (50%) in big companies, and one with a financial experience.
-In small companies 2 ED and 1 NED

Is there anything else we need to know?
November 30, 2019 at 3:04 pm #554249
vavneetb
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Anything else meaning in cpomposition of Audit committee?
November 30, 2019 at 4:37 pm #554261
Kim Smith
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I think you are confusing boards of directors and committees –
– the BOARD should be “balanced”
– the majority of the members of a nomination committee should be NEDs
– ALL the members of the AUDIT committee should be NEDs:

Per the Code re AUDIT committee:
“The board should establish an audit committee of independent non-executive directors, with a minimum membership of three, or in the case of smaller companies, two. The chair of the board should not be a member. The board should satisfy itself that at least one
member has recent and relevant financial experience.”

You can find the code here https://www.frc.org.uk/getattachment/88bd8c45-50ea-4841-95b0-d2f4f48069a2/2018-UK-Corporate-Governance-Code-FINAL.PDF
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