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Corporate governance refers to the system by which companies are directed and controlled, ensuring accountability, fairness, and transparency in a company’s relationship with its stakeholders. To strengthen corporate governance practices, various committees have been established within companies, especially those that are listed on stock exchanges. These committees play a vital role in ensuring effective oversight, ethical conduct, regulatory compliance, and efficient decision-making processes. Each committee has specific responsibilities and functions that collectively contribute to better governance and organizational performance. 1. Audit Committee The Audit Committee is one of the most significant committees in the corporate governance framework. Its primary responsibility is to oversee the financial reporting process, monitor the effectiveness of internal controls, review the functioning of internal and external auditors, and ensure the integrity of the company’s financial statements. This committee ensures that financial disclosures are accurate and compliant with applicable laws and standards. Typically, the Audit Committee is composed of independent directors, with at least one member having expertise in financial and accounting matters. It reviews internal audit reports, risk management practices, and whistleblower complaints. The presence of an independent audit committee promotes transparency and minimizes the likelihood of accounting fraud, thus strengthening stakeholders' confidence. 2. Nomination and Remuneration Committee (NRC) The Nomination and Remuneration Committee is tasked with evaluating and recommending individuals for appointment to the board and other key managerial positions. It also determines and reviews the remuneration policies for directors, executives, and senior management. The NRC ensures that appointments to the board _________ ______ ________ _________ ______ ____ _______ ____ ________ ______ ______.
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