Corporate Committee

**Central committee** is the common designation of a standing administrative body of communist parties, analogous to a board of directors, of both ruling and nonruling parties of former and existing socialist states. In such party organizations, the committee would typically be made up of delegates elected at a party congress. In those states where it constituted the state power, the central committee made decisions for the party between congresses and usually was (at least nominally) responsible for electing the politburo. In non-ruling communist parties, the central committee is usually understood by the party membership to be the ultimate decision-making authority between congresses once the process of democratic centralism has led to an agreed-upon position.

s a political body that comprises the top leaders of the Chinese Communist Party (CCP). It is currently composed of 205 full members and 171 alternate members (see list). Members are nominally elected once every five years by the National Congress of the Chinese Communist Party. In practice, the selection process is done privately, usually through consultation of the CCP's Politburo and its corresponding Standing Committee.

The Central Committee is, formally, the "party's highest organ of authority" when the National Congress is not in a plenary session. According to the CCP's constitution, the Central Committee is vested with the power to elect the General Secretary and the members of the Politburo and its Standing Committee, as well as the Central Military Commission. It endorses the composition of the Secretariat and the Central Commission for Discipline Inspection. It also oversees the work of various executive national organs of the CCP. The administrative activities of the Central Committee are carried out by the Central Committee's General Office. The General Office forms the support staff of the central organs that work on the Central Committee's behalf in between plenums.

The Committee usually convenes at least once a year at a plenary session ("plenum"), and functions as a top forum for discussion about relevant policy issues. The committee operates, however, on the principle of democratic centralism; i.e., once a decision is made, the entire body speaks with one voice. The role of the Central Committee has varied throughout history. While it generally exercises power through formal procedures defined in the party constitution, the ability for it to affect outcomes of national-level personnel decisions is limited, as that function has generally been, in practice, carried out by the Politburo and retired party elders who retain influence. Nonetheless, Central Committee plenums function as venues whereby policy is discussed, fine-tuned, and publicly released in the form of "resolutions" or "decisions".

## Functions[edit]

Members of the Committee convened about every four months. The Committee elected representatives to various bodies, among which the most important was the Politburo of the Polish United Workers' Party, which took actions between the conventions.

The **Politburo of the Central Committee of the People's Democratic Party of Afghanistan (PDPA)** or **Afghan Politburo** was the policy-making organ and institution within the Afghanistan's political structure when the PDPA Central Committee and the PDPA Congress were not in session. Only one politburos was formally elected; at the 1st Congress, despite this, the membership line-up was altered numerous times during the PDPA's existence.

According to the Constitution of the Chinese Communist Party, the Central Committee is tasked with "carrying out the decisions of the National Congress, leading the work of the party, and representing the party internationally." The Central Committee is therefore technically the "party's highest organ of authority" when the National Congress is not in session. The National Congress is convened only once every five years, so the Central Committee can be called upon in the interim to make extremely far-reaching decisions, or at least legitimize a change in direction mandated by the Politburo or other party leaders. The Central Committee must also be theoretically convened to prepare for a National Congress; for example, to determine its dates, delegate selection, agenda, and so on.

The Central Committee has the power to elect the General Secretary and the members of the Politburo, its Standing Committee, and the Central Military Commission. These elections take place in the form of confirmation votes; i.e., there is only one candidate, a delegate can choose to vote for or against or abstain for that candidate. In some instances write-in candidates may also be allowed. In practice, for important posts such as the General Secretary or the Politburo Standing Committee, there is no known occasion since 1949 where the Central Committee voted against a candidate already vetted by the top party leadership in advance.

The Central Committee also confirms membership of the Secretariat, the organ in charge of executing party policy, whose membership is determined through nomination by the Politburo. The Central Committee oversees the work of many powerful national organizations of the party, including the Propaganda, Organization, International Liaison, and United Front departments, among others.

## Responsibilities[edit]

Boards of Directors and their committees rely on management to run the daily operations of the business. The Board's role is better described as oversight or monitoring, rather than execution. Responsibilities of the audit committee typically include:

* Overseeing the financial reporting and disclosure process.
* Monitoring choice of accounting policies and principles.
* Overseeing hiring, performance and independence of the external auditors.
* Oversight of regulatory compliance, ethics, and whistleblower hotlines.
* Monitoring the internal control process.
* Overseeing the performance of the internal audit function.
* Discussing risk management policies and practices with management.

The duties of an audit committee are typically described in a committee charter, often available on the entity's website.×

* European Union: Directive 2006/43/EC, article 41.2: (...) the audit committee shall, inter alia: (a) Monitor the financial reporting process; (b) Monitor the effectiveness of the company's internal control, internal audit where applicable, and risk management systems; (c) Monitor the statutory audit of the annual and consolidated accounts; (d) Review and monitor the independence of the statutory auditor or audit firm, and in particular the provision of additional services to the audited entity.
* Public sector: Cf. Standard INTOSAI GOV #9100

### Role in oversight of financial reporting and accounting[edit]

Audit committees typically review financial statements quarterly and annually in public companies. In addition, members will often discuss complex accounting estimates and judgments made by management and the implementation of new accounting principles or regulations. Audit committees interact regularly with senior financial management such as the CFO and Controller and are in a position to comment on the capabilities of these managers. Should significant problems with accounting practices or personnel be identified or alleged, a special investigation may be directed by the audit committee, using outside consulting resources as deemed necessary.

External auditors are also required to report to the committee on a variety of matters, such as their views on management's selection of accounting principles, accounting adjustments arising from their audits, any disagreement or difficulties encountered in working with management, and any identified fraud or illegal acts.

### Role in oversight of the external auditor[edit]

Audit committees typically approve selection of the external auditor. The external auditor (also called a public accounting firm) reviews the entity's financial statements quarterly, audits the entity's financial statements annually, and issues an opinion providing assurance on the entity's annual financial statements. Changing an external auditor typically also requires audit committee approval. Audit committees also help ensure the external auditor is independent, meaning no conflicts of interest exist that might interfere with the auditor's ability to issue its opinion on the financial statements.

* European Union: Directive 2006/43/EC, article 41.3 and 41.4: *"In a public-interest entity, the proposal of the administrative or supervisory body for the appointment of a statutory auditor or audit firm shall be based on a recommendation made by the audit committee. The statutory auditor or audit firm shall report to the audit committee on key matters arising from the statutory audit, and in particular on material weaknesses in internal control in relation to the financial reporting process."*

### Role in oversight of regulatory compliance[edit]

Audit committees discuss litigation or regulatory compliance risks with management, generally via briefings or reports of the General Counsel, the top lawyer in the organisation. Larger corporations may also have a Chief Compliance Officer or Ethics Officer that report incidents or risks related to the entity's code of conduct.

### Role in monitoring the effectiveness of the internal control process and of the internal audit[edit]

Internal control includes the policies and practices used to control the operations, accounting, and regulatory compliance of the entity. Management and both the internal auditing function and external auditors provide reporting to the audit committee regarding the effectiveness and efficiency of internal control.

* IIA Practice Advisory: Cf. PA1110-1 paragraphs 2 and 3 (where the “board” means “an organization's governing body, such as a board of directors, supervisory board, (...) any other designated body of the organization, including the audit committee to whom the chief audit executive may functionally report)
* European best practice for the role of the Audit Committee in overseeing internal audit.

### Role in oversight of risk management[edit]

Organizations have a variety of functions that perform activities to understand and address risks that threaten the achievement of the organization's objectives. The policies and practices used by the entity to identify, prioritize, and respond to the risks (or opportunities) are typically discussed with the audit committee. Having such a discussion is required for listing on the New York Stock Exchange. Many organizations are developing their practices towards a goal of a risk-based management approach called Enterprise risk management. Audit committee involvement in non-financial risk topics varies significantly by entity. Dr. Ram Charan has argued for risk management early warning systems at the corporate board level.

* European best practice for the role of the Audit Committee in risk management: cf.

An **advisory board** is a body that provides non-binding strategic advice to the management of a corporation, organization, or foundation. The informal nature of an advisory board gives greater flexibility in structure and management compared to the board of directors. Unlike the board of directors, the advisory board does not have authority to vote on corporate matters or bear legal fiduciary responsibilities. Many new or small businesses choose to have advisory boards in order to benefit from the knowledge of others, without the expense or formality of the board of directors.

## Function[edit]

The function of an advisory board is to offer assistance to enterprises with anything from marketing to managing human resources to influencing the direction of regulators. Advisory boards are composed of accomplished experts offering innovative advice and dynamic perspectives. Meeting quarterly or biannually, boards can provide strategic direction, guide quality improvement, and assess program effectiveness.

Entrepreneurs, especially from startup companies or small business may not want to dilute their control of their business by establishing a board of directors with formal responsibilities and authorities. Thus, an advisory board may be a more suitable solution to entrepreneurs who want access to high-quality advice and network in the industry. Advisory board, as an external group, could also provide non-biased information and advice to entrepreneurs.

Advisory boards can be implemented in various different areas, including science, medicine, technology, editorial policy, citizen participation, and other topics. The Advisory Board Sector has grown by 52% since 2019 according to the State of the Market Global Report 2021.

### Roles and responsibilities of advisory board members[edit]

* developing an understanding of the business, market and industry trends
* provide “wise counsel” on issues raised by owners/directors or management
* provide unbiased insights and ideas from a third point-of-view (not involved in the operation of the business)
* encourage and support the exploration of new business ideas
* act as a resource for executives
* provide a social networking platform for directors and the company
* encourage the development of a governance framework that enables sustainable growth of the company
* monitor business performance
* impose challenges to directors and management that could improve the business

Source:

## Reasons for creating an advisory board[edit]

The main reason to create an advisory board is to seek expertise outside of the company. Advisory board members should provide the company with knowledge, understanding and strategic thinking of the industry or management of the company.

Companies should seek advisory board members whose qualities complement the existing board of directors and not mask gaps in knowledge or skill in the main board. An advisory board strengthens the existing board, but does not interfere with authorities of the existing board. The former editor of The Economist, also an advisory board member, once said, “They [advisory boards] are there to give focus to or sometimes challenge research and intelligence work being done in the company, thus avoiding groupthink and giving direction on big picture issues.”