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Kim Smith.
Kim Smith.- Posts
syamkamath- Topics: 2
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Is it not the right of shareholders to elect the board of directors for a committee? Then how can corporate governance code give that authority to the nomination committee?
Or does the committee just nominate candidates for BoD who then have to be elected by the shareholders?Kim Smith- Topics: 39
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You will find a real world example here relating to a board committee here (in this case an audit committee). http://www.stockmanngroup.com/en/audit-committee-charter
Shareholders appoint ALL directors – the directors then appoint members to the various committees (whose purpose is to assist the board in meeting its responsibilities) “from among their number”.
A dictionary definition of “nominate” is “to propose or formally enter as a candidate for election or for an honour or award”.
It does not mean appoint – only the shareholders can appoint (by simple majority).
syamkamath
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