Composition
Usually, membership of the Committee is subject to the maximum number of 6 persons.
- In the USA, a qualifying audit committee is required for listed publicly traded companies. To qualify, the committee must be composed of independent outside directors with at least one qualifying as a financial expert.
- European Union, 8th Directive on company law 2006/43/EC: “Each public-interest entity shall have an audit committee. The Member State shall determine whether audit committees are to be composed of non-executive members of the administrative body and/or members of the supervisory body of the audited entity and/or members appointed by the general meeting of shareholders of the audited entity. At least one member of the audit committee shall be independent and shall have competence in accounting and/or auditing.”
- Institute of Internal Auditors best practice: “The audit committee will consist of at least three and no more than six members of the board of directors... Each committee member will be both independent and financially literate. At least one member shall be designated as the "financial expert," as defined by applicable legislation and regulation”.
Read more about this topic: Audit Committee
Famous quotes containing the word composition:
“At painful times, when composition is impossible and reading is not enough, grammars and dictionaries are excellent for distraction.”
—Elizabeth Barrett Browning (1806–1861)
“Every thing in his composition was little; and he had all the weaknesses of a little mind, without any of the virtues, or even the vices, of a great one.”
—Philip Dormer Stanhope, 4th Earl Chesterfield (1694–1773)
“The proposed Constitution ... is, in strictness, neither a national nor a federal constitution; but a composition of both.”
—James Madison (1751–1836)