Table 1.

Role of boards and committees and Australian requirements

Committee/boardRole/functions*ASX Corp Gov Council (2019)APRA Prudential Standard CPS 510 Governance (2019)ASX Listing Rules (2025)
BoardsResponsible for strategic direction, performance, monitoring and compliance2.4 Majority of board of a listed entity should be independent directors 2.5 The chair of the board of a listed entity should be an independent director26 Minimum five directors 27 Majority of board members are independent 28 Chair independent12.5 Must have an appropriate structure
Audit committeeProvides oversight of financial reporting, internal controls and audit processes4.1 At least three members, all non-executive directors, majority independent, chair independent director and not the chair of the board73 Mandatory 75 At least three members, all non-executive directors, majority independent 76 Chair independent 77 Chair not board chair12.7 Must comply with the ASX Corporate Governance Council recommendations in relation to composition and operation
Remuneration committeeOversees remuneration policies, ensures alignment with company goals and prevents conflicts of interest8.1 At least three members, majority independent and chair independent director65 Mandatory 66 At least three members, all non-executive, majority independent12.8 Must have a committee and members must be non-executive directors
Nomination committeeIdentifies and recommends candidates for board and senior management positions2.1 At least three members, majority independent and chair independent director  
Risk committeeManages and oversees the company’s risk management framework and policies7.1 At least three members, majority independent and chair independent director101 Mandatory 103 Chair independent 105 At least three members, all non-executive and majority independent 
Sustainability committeeOversees environmental and social risk disclosures and sustainability initiatives   

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