Huatai Securities updates board committee charters for enhanced governance

Huatai Securities Co. (HTSC) has revised the terms of reference for its board of directors' committees, including the compliance and risk management, audit, development strategy, nomination, and remuneration and appraisal committees. These revisions, effective upon board approval, supersede previous versions and align with various regulatory provisions, including the company law of PRC and listing rules of both Shanghai and Hong Kong Stock Exchanges. The updated charters detail the responsibilities, composition, and operational procedures for each committee, aiming to enhance corporate governance and the board's decision-making capabilities.

Key changes include the formal establishment of five specialized committees, each comprising three to five directors. The audit, nomination, and remuneration and appraisal committees will maintain a majority of independent non-executive directors, with the audit committee convenor required to be an accounting professional. The development strategy committee chairman will be the company's board chairman, while other committee chairmen are elected from within the committee members.

The revisions also outline specific duties such as the compliance and risk management committee's role in evaluating major decision risks, the audit committee's oversight of financial reporting and internal controls, and the nomination committee's responsibility for director and senior management selection criteria. The remuneration and appraisal committee will focus on executive compensation frameworks and performance appraisals. Meetings for specialized committees must occur at least twice annually, with resolutions requiring approval from over half of all committee members, ensuring robust governance and accountability.