Tuya Inc. has released an updated Audit Committee Charter, initially adopted on February 21, 2021 and amended multiple times through March 2, 2026, with immediate effect. The amended charter addresses expanded responsibilities and structures the Audit Committee’s membership, which must comprise at least three non-executive directors. These directors are required to meet independence and financial expertise criteria in accordance with U.S. regulatory standards, NYSE listing rules, and the Stock Exchange of Hong Kong Limited’s listing rules.
Key revisions in the document include enhanced oversight of financial statements, external and internal auditors, and Related Party Transactions. The charter mandates the Audit Committee to evaluate the independent auditor’s qualifications, ensure robust internal audit coverage, and monitor compliance with legal and regulatory requirements. It also sets forth procedures for pre-approving audit and non-audit services, managing complaints related to accounting or auditing matters, and overseeing risk management practices. Additionally, there is heightened focus on data privacy, cybersecurity, and disclosure requirements, emphasizing a thorough annual review of controls and clear reporting channels for any potential issues.
The newly adopted policy for Related Party Transactions introduces specific criteria for approval, requiring that such transactions be fair, beneficial, and subject to detailed review. The charter also clarifies that all meetings must be recorded in minutes, with regular reporting to the board of directors. These measures aim to strengthen corporate governance, ensure transparency in accounting and auditing practices, and maintain clear accountability within Tuya Inc.
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