HC-3.3 Board Committees
HC-3.3.1
Bahraini investment firm licensees must comply with the requirements of this Section for each of the Board committees it establishes. The Board must at minimum establish an Audit Committee.Added: July 2023HC-3.3.2
Objectivity and independence must be ensured by the selection of appropriate Board members in each committee.
Added: July 2023HC-3.3.3
Committees may be combined provided that no conflict of interest arises between the duties of such committees, and subject to the CBB’s prior approval.
Added: July 2023HC-3.3.4
Every committee must have a formal written charter or other instrument which sets out its roles and responsibilities, how the committee will report to the Board, what is expected of committee members and any tenure limits for serving on the committee.
Added: July 2023HC-3.3.5
Each committee must have the resources and the authority necessary to discharge its duties and responsibilities, including the authority to select, retain, terminate and approve the fees of external legal, accounting or other advisors as it deems necessary.
Added: July 2023HC-3.3.6
Each Board committee must maintain appropriate records of their deliberations and decisions in their meeting minutes, including key points of discussions held, recommendations made, decisions taken (and update on their subsequent implementation) and dissenting opinions (if any).
Added: July 2023HC-3.3.7
Each committee must prepare and review with the Board an annual performance evaluation of the committee and its members and must recommend to the Board any improvements deemed necessary or desirable to the committee’s charter or composition. The report must be in the form of a written report presented at any regularly scheduled Board meeting.
Added: July 2023HC-3.3.8
Members of each committee must exercise judgment free from any personal conflicts of interest or bias.
Added: July 2023HC-3.3.9
The Board should consider occasional rotation of membership and chair of the Board committees provided that doing so does not impair the collective skills, experience and effectiveness of these committees.
Added: July 2023
