ACCA Strategic Professional · Strategic Business Leader · The board of directors

Zentara plc, a listed company, is reviewing its board structure. The chair wants the committee that recommends new director appointments to the board to be led by an independent person, with a majority of independent non-executive directors, so that appointments are not dominated by the chief executive. Which board committee is being described?

The nomination committee is described. It recommends new director appointments and reviews board balance and composition, and being led by an independent person with mostly independent non-executives stops the chief executive dominating who joins the board.

AAudit committee
BRemuneration committee
CNomination committeeCorrect
DRisk committee

Explanation

The nomination committee identifies and recommends candidates for board appointments and reviews board composition. Making it independent-led reduces the risk of the chief executive appointing allies. The remuneration committee sets pay, the audit committee oversees reporting and controls, and the risk committee oversees risk.

Did you get it right without looking?

One question tells you little. A timed set on The board of directors shows your real accuracy, how long you take and where you lose marks.

Practise The board of directors Free diagnostic mock

More The board of directors questions