Corporate Governance

Question 1

What percentage of a board should be independent NEDs?

Answer 1

50%

Question 2

Are the chair and chief executive roles allowed to be the same person?

Answer 2

No

Question 3

Is a person classed as independent if they were an employee of the company over 5 years ago?

Answer 3

Yes

Question 4

Is a person classed as independent if they had a material business relationship with the company within the last 3 years?

Answer 4

No, it needs to be over 3 years

Question 5

How often should the NEDs and independent director meet without the chair present?

Answer 5

Annually

Question 6

How long should the chair not remain in post for from their first appointment?

Answer 6

9 years

Question 7

How many independent NEDs should there be on an audit committee?

Answer 7

3, but for smaller companies 2

Question 8

Is the chair of the board allowed to be part of the audit committee?

Answer 8

No

Question 9

How should pay be determined by the audit committee?

Answer 9

By time commitment and responsibilities of the role

Question 10

How long should a notice period be?

Answer 10

A year or less