HC-1.8 HC-1.8 Committees of the Board
HC-1.8.1
The Board must establish Audit, Remuneration, Nominating and Risk Committees described elsewhere in this Module.
Amended: July 2018
October 2010HC-1.8.2
The Board should establish a corporate governance committee of at least three independent members which should be responsible for developing and recommending changes from time to time in the
Islamic bank licensee's corporate governance policy framework.Amended: January 2012
October 2010HC-1.8.3
The Board or a committee may invite non-directors to participate in, but not vote at, a committee's meetings so that the committee may gain the benefit of their advice and expertise in financial or other areas.
October 2010HC-1.8.4
Committees must act only within their mandates and therefore the Board must not allow any committee to dominate or effectively replace the whole Board in its decision-making responsibility.
October 2010HC-1.8.5
Committees may be combined provided that no conflict of interest might arise between the duties of such committees, subject to CBB prior approval.
October 2010HC-1.8.6
Every committee must have a formal written charter similar in form to the model charters which are set forth in Appendices A, B and C of this Module for the Audit, Nominating and Remuneration Committees.
October 2010HC-1.8.7
Where committees are set up, they should keep full minutes of their activities and meet regularly to fulfil their mandates. For larger banks that deal with the general public, committees can be a more efficient mechanism to assist the main Board in its monitoring and control of the activities of the bank. The establishment of committees should not mean that the role of the Board is diminished, or that the Board becomes fragmented.
October 2010
