As the program director of HKiNEDA Essentials course, Dr. Lawrence Wong conducted a class of “Board Committee Essentials for INEDs” for INED Essentials Training Program. on 13 Jun 2019.
This is the chapter 4 of the INED Foundation Course. He started to introduce that Board of Directors (BOD) is the ultimate leader of the company responsible for determining the company’s risk appetite, so as to finalize the corporate strategy and specific goals, and to ensure the establishment of effective internal control and risk management systems.
The BOD must statutory delegate some of its responsibilities and functions to at least 3 different committees, namely Audit Committee (AC) , Remuneration Committee (RC) and Nomination Committee (NC).
AC is responsible for internal control and risk management and ensure efficient financial systems are in place to produce accurate financial reports; RC is responsible for the remuneration strategy and specific composition and proportion of all members of the board of directors and corporate senior executives; NC is responsible to ensure the composition of board of directors is well diversified and able to meet the needs and development of the company.
Lastly, long-term succession plan is required for senior positions like Board Chairman and CEO.
Board of Directors
Corporate Governance Committee