Skip to content

CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board Committees

Zenith Agro Ltd, a listed company, has formed a Risk Management Committee to oversee its enterprise risk framework. The Board asks the Company Secretary what the committee's primary role should be. Which is the most appropriate description?

The Risk Management Committee oversees the risk management policy and its monitoring, including cyber security and ESG-related risks. Remuneration belongs to the Nomination and Remuneration Committee and grievances to the Stakeholders Relationship Committee, so those options describe different committees.

  1. ATo approve the annual remuneration of all senior management and directors
  2. BTo oversee the formulation and monitoring of the risk management policy, including cyber security and ESG-related risksCorrect
  3. CTo resolve grievances of security holders about share transfers and dividends
  4. DTo select the statutory auditor and fix the auditor's fees

Explanation

A Risk Management Committee oversees the risk management framework, covering strategic, operational, financial, sustainability (ESG) and cyber security risks, and monitors implementation. Remuneration is the Nomination and Remuneration Committee's work under section 178, and grievance handling belongs to the Stakeholders Relationship Committee, so those options mix up committees.

Did you get it right without looking?

One question tells you little. A timed set on Board Committees shows your real accuracy, how long you take and where you lose marks.

Practise Board CommitteesFree diagnostic mock

More Board Committees questions