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:
“There is singularly nothing that makes a difference a difference in beginning and in the middle and in ending except that each generation has something different at which they are all looking. By this I mean so simply that anybody knows it that composition is the difference which makes each and all of them then different from other generations and this is what makes everything different otherwise they are all alike and everybody knows it because everybody says it.”
—Gertrude Stein (1874–1946)
“I live in the angle of a leaden wall, into whose composition was poured a little alloy of bell-metal. Often, in the repose of my mid-day, there reaches my ears a confused tintinnabulum from without. It is the noise of my contemporaries.”
—Henry David Thoreau (1817–1862)
“When I think of God, when I think of him as existent, and when I believe him to be existent, my idea of him neither increases nor diminishes. But as it is certain there is a great difference betwixt the simple conception of the existence of an object, and the belief of it, and as this difference lies not in the parts or composition of the idea which we conceive; it follows, that it must lie in the manner in which we conceive it.”
—David Hume (1711–1776)