Board Committees
To assist the Board in ensuring strict compliance with the principles of good corporate governance, the Board has created five committees.
Executive Committee. The Executive Committee is tasked to help and assist the officers of the Company in the management and direction of the affairs of the Company. It acts within the powers and authority granted upon it by the Board and is called upon when the Board is not in session to exercise the powers of the latter in the management of the Company, with the exception of the power to appoint any entity as general managers or management or technical consultants, to guarantee obligations of other corporations in which the Company has lawful interest, to appoint trustees who, for the benefit of the Company, may receive and retain such properties of the Company or entities in which it has interests, and to perform such acts as may be necessary to transfer ownership of such properties to trustees of the Company, and such other powers as may be specifically limited by the Board or by law.
Audit Committee. The Audit Committee is responsible for assisting the Board in the performance of its oversight responsibility on financial reports and financial reporting process, internal control system, audit process and plans, directly interfacing with internal and external auditors, and in monitoring and facilitating compliance with both the internal financial management manual and pertinent accounting standards, including regulatory requirements, elevating to international standards the accounting and auditing processes, practices and methodologies of the Company. The Committee performs financial oversight management functions, specifically in the areas of credit management, markets liquidity, operational, legal and other risks, as well as crisis management. It also has the power and authority to review related party transactions entered into by the Company.
Corporate Governance Committee. The Corporate Governance Committee is tasked to ensure the Company's compliance and proper observance of corporate governance principles and practices. It oversees the implementation of the Company's corporate governance framework and the performance evaluation of the Board and its committees, as well as top management. The Committee advises the Board on the establishment of a formal and transparent procedure for developing policy on remuneration of directors and senior management that is aligned with the long term interests of the Company, ensuring that compensation is consistent with the Company's culture and strategy, as well as the business environment in which it operates. It likewise reviews and oversees the implementation of policies relating to business interest disclosures and conflict of interest, appointments and promotions of officers, and succession planning. Further, the Committeedetermines the nomination and election process for the Company's Board of Directors, and screens and shortlists candidates to the Board in accordance with the qualifications and disqualifications for directors defined the Company's Manual on Corporate Governance, applicable laws and regulations.
Related Party Transactions Committee. The Related Party Transactions Committee is tasked to review all material related party transactions (RPTs) of the Company to make certain that these are entered into on an arms-length basis and at market rates. It evaluates existing relations between and among businesses and counterparties to ensure the identification of all related parties, including changes in relationships of counterparties, and that RPTs are monitored. The Committee is responsible for ensuring that appropriate disclosures are made relating to the Company's RPT exposures and policies on conflict of interest. It also oversees the periodic review of RPT policies and procedures.
Board Risk Oversight and Sustainability Committee. The Board Risk Oversight and Sustainability Committee is responsible for the oversight of the enterprise risk management (ERM) system and sustainability practices across the Company and its operating subsidiaries (the “Group”), to ensure the long-term success of the Group. The Committee is tasked to develop and oversee the implementation of a formal ERM plan and periodically review and advise the Board of the Company's risk appetite levels and risk tolerance limits based on changes and developments in the business, the regulatory framework, and the external economic and business environment. It also reviews the Sustainability Roadmap adopted by the Group and ensures that the Group’s targets, policies and strategies pertaining to sustainability are aligned with, promote and advance the Company’s vision and purpose.