The Bank of East Asia, Limited has released an updated version of its Audit Committee Terms of Reference as of November 2025. The Committee was first established on 29th September 1998 to ensure effectiveness of the financial reporting process, risk management, and internal control systems across the Bank and its subsidiaries.
The updated document clarifies membership requirements, including the need for at least three non-executive directors, with a majority being independent. An independent non-executive director must serve as Committee Chair. It also specifies the frequency of meetings, which take place at least four times a year, and emphasizes close coordination with both internal and external auditors.
The Audit Committee retains broad authority to investigate any activity within its scope, backed by the ability to seek additional resources or professional advice as needed. It is tasked with reviewing appointments and remuneration of external auditors, monitoring their independence, assessing risk-management frameworks, and overseeing the Bank’s internal audit function.
Reporting procedures are highlighted to ensure the Board receives regular updates on the Committee’s key findings regarding financial reporting, controls, and risk-related matters. The revised Terms of Reference additionally incorporate corporate governance responsibilities such as reviewing employee whistleblowing arrangements and ensuring alignment with the relevant listing and regulatory provisions.
The updated guidelines are to be reviewed annually or as appropriate to maintain compliance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Corporate Governance Code.
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