We can highlight following main subcommittee of the board of directors in most of the company
- Audit Committee
- Finance Committee
- Regulatory and compliance Committee
- Science ,technology and Sustainability Committee
- Compensation and benefit Committee
- Corporate governance committee
Let us Identify and define Audit Committee in details
Main purpose of Audit Committee
This committee shall provide assistance to the directors of the Company in fulfilling their responsibility to the shareholders relating to corporate accounting matters, the financial reporting practices of the Company, and the quality and integrity of the financial reports of the Company
Structure and Operations of Audit Committee
It shall comprised of three or more directors as determined by the Board (upon the recommendation of the Nominating and Governance Committee), each of whom shall be an “independent” director for purposes of Audit Committee membership. All members of the Audit Committee shall, in the judgment of the Board, be financially literate.
Meeting of Audit Committee
It have ordinarily meet at least four times annually, or more frequently as circumstances dictate. Member of this committee may call meetings of the Audit Committee. Any director of the Company who is not a member of the Audit Committee may attend meetings of the Audit Committee.
Responsibilities and Duties of the Audit Committee
We can highlight following main duty of Audit committee
the very first duty is to review and discuss with management and the independent auditor the annual and quarterly financial statements prior to their filing
Discuss generally the Company’s philosophy and processes associated with earning guidance provided to analysts and rating agencies
Review with the independent auditor all critical accounting policies and practices to be used; all alternative treatments of financial information within generally accepted accounting principles
Reviewing, and actively discussing with the Board
Developing clear hiring policies for employees or former employees of the independent auditor
Recommending, if necessary, that the Board take certain action to satisfy itself of the auditor’s independence and Many more
