A FTSE250 Company Secretary writes...
Code Provision C3.1 of the UK Corporate Governance Code requires the audit committee as a whole to have competence relevant to the sector in which the company operates
Guidance on Audit Committees published by FRC in April 2016, which also reflect the changes to the Code states in Para 15 that when considering the composition of the audit committee, the nomination committee and the board should have regard to ensuring a range of skills, experience, knowledge and professional qualifications are in place to meet the requirements of the Code. The need for a degree of financial literacy among Committee members will vary according to the nature of the company but experience of corporate financial matters will be required as a matter of course with more financial expertise being required where the company’s activities involve specialised financial activities
How do listed companies propose to measure this requirement to ensure there is compliance?