Board Activities: Corporate Governance in Practice

This chapter highlights the importance of board committees, particularly the remuneration committee, the nomination committee, and the audit committee. It explains that the remuneration or compensation committee is responsible for recommending to the board the remuneration packages of executive directors and other top management, while the role of the nomination committee is to suggest names for board membership in an attempt to introduce different experiences, personalities, and diversity to the board. The chapter also discusses the fundamental role the audit committee plays in corporate governance practice. It furthermore draws attention to the audit committee, which provides a bridge between the external auditor and the board. It also considers the significance of the company secretary, who has a duty to act in good faith in the best interest of the company.