The Committee shall be comprised of not less than three (3) members All of them are non-executive and at least include one Independent Board member. The committee chairman shall be an Independent Director. Executive Directors are not eligible for Committee membership.
• Members shall have an appropriate level of understanding of:
➢ Principles of corporate governance;
➢ Company’s businesses and the organizational structure;
➢ The functions of the Board of Directors and the various roles and responsibilities of directors and other key executive positions;
The membership of Committee member, if he is a Board Director, shall come to an end at the expiry of his membership of the Board of Directors or by his voluntary resignation from Committee membership. Membership will expire for members from outside the Board by way of his/her resignation or at the end of the Committee’s term.
Committee members may be removed or replaced by the Board of Directors in the event that any of them violates the provisions of this charter or for any reasons that the Board deems appropriate, provided that the decision is taken by the majority of its attended members, The member also has the right to resign from the committee, provided that this is at a suitable time accepted by the Board of Directors, after the resignation is approved by the Committee Chairman.
If the position of a member of the Nomination and Remuneration Committee becomes vacant during the term of membership, the Board shall appoint another member to the vacant position and the new member shall complete the term of his predecessor.
Appointment procedures:
When appointing members of the Nomination and Remuneration Committee, the following procedures shall be followed:
1. The Board of Directors shall nominate, evaluate and select members of the Nomination and Remuneration Committee who possess the necessary skills, individually or collectively, to be appointed as members of the Committee.
2. In the event that the committee members do not have the required skills, coordinat ion with the human resources department in the company is required, in order to identify suitable candidates (from inside or outside the board) who have the necessar y skills.
Membership Duration:
Members of the Committee shall be appointed by the Board of Directors for a term coinciding with the term of the Board of Directors.
If any member is appointed during the term of office of the committee, the term of his membership shall coincide with the ter m of office of the committee unless he is appointed for a shorter term. The members of the committee may be reappointed again after the expiry of the committee’s term of office, by following the appointment procedures in this charter.
Membership Termination:
1. NRC membership may be terminated by a BOD decision in the following cases:
• The committee member's failure to fulfill any of the requirements / responsibilities due to him, or his failure to meet the terms of appointment.
• Loss of legal capacity.
2. According to the powers granted to the Board, the Board may accept the resignation of any member of the Committee.
Appointment of the committee chairman
Members shall elect a chairman amongst themselves, unless he is designated by the Board. The chairman shall be an Independent Director. Board Chairman is not eligible to be a Chairman of NRC.
Duties of the Chairman of the Committee
1. Supervising the work of the committee and holding its meetings efficiently.
2. Cooperating with members to set and approve the meeting agenda and to invite all members to meetings on a date and place designated for committee meetings.
3. Ensure that all items that require approval by the committee are submitted or that the committee's recommendations are submitted to the council.
4. Ensuring that all issues before the committee are accompanied by sufficient information to enable the committe e to take decisions on them.
5. Verify that the advisory bodies enjoy complete independence in addition to their appropriate qualification.
6. Ensure that the Committee has direct access to senior management as may be required by the Board.
7. Representing the Committee before the Council, the General Assembly or any other party to discuss the relevant issues therein.
8. Representing the Committee on important issues to ensure the ability of the Internal Audit Department to carry out its tas ks and responsibilities.
9. Inform the members of the Committee of the procedures and decisions taken to address relevant urgent matters
Appointment of the Secretary of the Nomination and Remuneration Committee:
Members may elect a secretary of the Committee amongst themselves or others.
from the company’s team or through a third party, to be responsible for preparing for the committee’s meetings, preparing records and documents, and following up and facilitating/implementing its recommendations, decisions and action plans. His term of office shall be the same as that of the committee, unless he was appointed for a shorter period of time, and he may be reappointed again after the expiry of his orig inal term of appointment.
Duties of the Secretary of the Nomination and Remuneration Committee :
1. Ensure the smooth running of the committee's activities.
2. To act as the main point of contact and a source of information, and to provide advice and guidance to members of the Committee regarding the activities of the company, in order to support the decision-making process.
3. Informing the members of the Committee of all relevant information that was considered during the decision -making.
4. Maintaining and managing the committee’s bylaw and ensuring its adequacy to meet changes in the company’s business and regulatory requirements, and identifying any required bylaw changes for consideration.
5. Preparing correspondence letters when arranging with the committee chairman as needed, and direct ing them to committee members, the board of directors and related parties. This includes making the required contacts to schedule/call for committe e meetings.
6. Preparing the information needed by the committee members during their meetings.
7. Assist the committee chairman in preparing the committee's meeting agendas and circulating them to committee members, at least one week before the meeting date.
8. Invite the relevant parties, including advisory bodies, legal advisors, or any other party, to the committee's meetings.
9. Preparing the minutes of the meeting and circulating it to all members of the committee for approval within five (5) worki ng days. The Secretary shall send the minutes of the meeting within two/ three working days in cases that require rapid completion as determined by the Chairman of the Committee, and the minutes of the meeting shall include the following:
• Date and number of the meeting
• Meeting Place
• Names of attendees and agents (authorized to attend on behalf of members)
• A statement of the reasons for the absence of persons not present at the meeting.
• Topics raised and discussions
• All decisions taken and recommendations made
• The reservations made by the members present on any of the decisions or recommendations issued by the committee
10. The Nomination and Remunerations Committee shall express its views on the minutes of the meetings which are sent by the Secretary of the Committee within seven to ten (7-10) working days from the date of the meeting. In the event that the Secretary of the Committee does not receive any observations or visions within ten (10) working days of receiving the draft minutes, it shall be considered as an acknowledgment of approval. All the topics discussed and the committee’s decisions are recorded in the minutes of the meetings, and the committee secretary updates the draft minutes of the meeting based on the members’ comments and sends them with the comments addressed to the chair and committee members for review and approval.
11. The final minutes are approved and signed by the chairman and members of the committee and the secretary.
12. Keep the final, signed copy of the minutes attached to the relevant documents and correspondence in a special file.
13. Documenting and updating the work plans proposed by the committee, with defining the responsibilities, the responsible
person and the target date for implementation, in order to facilitate the tracking of issues that are not closed and related to the decisions of the committee.
14. Circulating the decisions/minutes of the committee to the concerned authorities.
15. Follow up on the issues that are not closed and the topics that will be presented to the committee.
16. Inform the committee chairman of any obstacles that prevent the committee's work, including any delay in implementing its decisions and recommendations.
17. Sending all minutes of the committee's meetings to the Board of Directors through the Secretary of the Board of Directors . Board/Secretary of the Board.
18. Commitment to maintain the confidentiality of information and not to share what is going on in meetings with the administration or any other party.
Meetings and Quorum
The Committee shall meet at least two (2) times per annum, Provided that the committee convened periodically every six months, or more frequently as required. Each meeting of the committee should be followed by submitting a detailed report on the results of the meeting to the Board. Meetings may be either in person or remotely using modern technology such as video calls and others.
The Committee shall also meet if requested by Committee Chairman, two Committee members or the Board Chairman.
The Committee Secretary shall prepare an agenda for each meeting in consultation with the Committee Chairman and Committee members. The agenda shall be distributed to all members at least five (5) days in advance of the meeting.
A quorum at any Committee meeting shall consist of a majority of the Nomination and Remuneration Committee members. if the Chairman is absent, the members in attendance will elect a temporary Chairman amongst themselves during the meeting.
All Committee resolutions shall be passed by majority of votes of the attendees, whether the decisions were in attendance and included in the minutes of the meetings or by passing. Each member of the Committee shall have one vote. The Chairman’s vote shall be the tie breaker (i.e. if votes on a particular decision are equal in number, the Chairman shall have one extra vote which will be the deciding vote).Dissenting members will not be liable if they have expressly recorded their objection to the resolution in the minutes of meeting that adopted it. Absence or leaving in the middle of meeting does not constitute cause for relief from liability unless it is established that the member was not aware of the resolution.
The Committee has the power to invite any officer or employee of the Company to attend its meetings. Such individuals should be invited through the Company’s Chief Executive Officer ("CEO").