Which of the following options are false? In terms of the King IV Code the chairperson of the board…a.may not be the chair of the risk committee.b.should be a member of the nominations committee.c.may not be a member of the remuneration committee.d.should be a member of the audit committee.
Question
Which of the following options are false? In terms of the King IV Code the chairperson of the board…a.may not be the chair of the risk committee.b.should be a member of the nominations committee.c.may not be a member of the remuneration committee.d.should be a member of the audit committee.
Solution
According to the King IV Code:
a. The chairperson of the board may not be the chair of the risk committee. This statement is TRUE. The chairperson of the board should not be the chair of the risk committee to ensure independence and avoid conflict of interest.
b. The chairperson should be a member of the nominations committee. This statement is TRUE. The chairperson is typically a member of the nominations committee as they play a key role in selecting and appointing board members.
c. The chairperson may not be a member of the remuneration committee. This statement is FALSE. The chairperson can be a member of the remuneration committee, but they should not chair this committee.
d. The chairperson should be a member of the audit committee. This statement is FALSE. The chairperson should not be a member of the audit committee to maintain its independence. The audit committee should be made up of non-executive directors.
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