CBB Volume 5: Contents

Central Bank of Bahrain Volume 5—Specialised Licensees
Specific Modules (By Type of Licensee)
Type 3: Financing Companies
Part A
High Level Standards
HC Financing Companies High-level Controls Module
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Location: Central Bank of Bahrain Volume 5—Specialised Licensees > Specific Modules (By Type of Licensee) > Type 3: Financing Companies > Part A > High Level Standards > HC Financing Companies High-level Controls Module > HC-1 The Board > HC-1.8 Committees of the Board > HC-1.8.4
  • HC-1.8 Committees of the Board

    • HC-1.8.1

      The board must create specialised committees when and as such committees are needed. In addition to the Audit, Remuneration and Nominating Committees described elsewhere in this Module, these may include an Executive Committee to review and make recommendations to the whole board on the licensee'sG actions, or a Risk Committee to identify and minimize specific risks of the licensee'sG business.

      January 2013

    • HC-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 licensee'sG corporate governance policy framework.

      January 2013

    • HC-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.

      January 2013

    • HC-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.

      January 2013

    • HC-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.

      January 2013

    • HC-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.

      January 2013

    • HC-1.8.7

      Where committees are set up, they should keep full minutes of their activities and meet regularly to fulfill their mandates. For larger licenseesG 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 licenseeG . The establishment of committees should not mean that the role of the Board is diminished, or that the Board becomes fragmented.

      January 2013

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