Annual Report 2011 - Hong Kong Monetary Authority

4. Executive Committee
The Executive Committee is comprised of 10 members
appointed by the Board of Directors and operates as a
collegial body, holding weekly meetings that on average
last half a day. In 2011 it met 51 times. Resolutions are
passed by an absolute majority of the members present,
provided they form a quorum. In the event of a tie, the
Chairman has the casting vote. The Executive Committee’s
resolutions may also be passed by circular as prescribed
in the Bylaws. Minutes are taken at the meetings of the
Executive Committee; they are duly numbered and signed
by the Chairman and Vice-Chairman. Each meeting follows
a standing agenda that covers the full range of the Bank’s
operations.
Each of the Bank’s departments is placed under the supervision
of a member of the Executive Committee (see Group
structure and shareholders, p. 24). At meetings members
report to the rest of the Committee on any major developments
that have occurred in their area of responsibility.
The members of the Executive Committee receive documents
and statistics issued weekly, monthly or quarterly by
the departments and groups concerned. In particular, they
receive a progress report containing the following: the
Chief Executive Officer’s comments; various statistics including
summarised monthly accounts comparing actual
business performance with the budget; monthly lists of
financial investments; the financial statements of the
various entities forming the Banque Privée Edmond de
Rothschild Group; a report on risk control noting market,
interest rate and counterparty risks; the level of shareholders’
equity; and risks of a legal and reputational nature
(cf. compliance). The Executive Committee can also rely on
the supervision and monitoring facilities described in
section 3.6 above. These facilities are honed year after year
to enhance their effectiveness.
To help it perform its duties, the Executive Committee has set
up the following committees: a Management Committee; a
Traditional Management Committee; an Alternative Management
Committee; an Investment Funds Committee; a Bond
Investment Funds Committee; a Strategy Committee; a
Standing Committee for Operations; a Credit Committee;
a Risk Committee; a Product Risk Committee; a Fees
Committee; a Broker Committee; a Compliance Committee;
a Security Committee; a Steering Committee; an Asset
& Liability Management Committee; a Trading Committee
and a Training Committee.
Minutes are taken at the meetings of these committees.
They are numbered, dated and signed, and a copy is remitted
to each member of the Executive Committee.
Other Bank executives, as well as employees, internal auditors
and external advisers or experts may also be invited to
the meetings of the Executive Committee. However, these
persons may only participate in an advisory capacity.
CORPORATE GOVERNANCE 37