Role of audit committee at Dutch PIEs to be reinforced
The duties of the audit committee at Dutch public-interest entities (listed companies, banks and insurers) are extended, and new rules on expertise and independence are to be introduced. The committee members must have collective expertise relevant to the sector that the company is operating in. And instead of one independent member, a majority of the members must be independent. That majority must include the chairman, who is appointed by the audit committee members or the supervisory board. A new task is given to the audit committee: responsibility for the selection and recommendation for the appointment of statutory auditors or audit firms.
All these changes are set out in the consultation text of a new Appointment of Audit Committees at Public-Interest Entities Decree. The proposed decree is to implement the new EU Audit Directive. In addition to the decree, the provisions of the EU Audit Regulation will apply. The consultation period ends on 4 December 2015.