Zhejiang Shibao Company Limited released its Audit Committee Terms of Reference dated 7 November 2025, detailing committee membership, authority, duties, and meeting procedures. The document stipulates that the Audit Committee must comprise at least three directors, with a majority of independent non-executive directors. At least one independent non-executive director is required to possess professional qualifications or expertise in accounting or financial management as mandated by Hong Kong Stock Exchange regulations.
Under the Terms of Reference, the Audit Committee is authorized to review all accounts, books, and records of the company and may consult external professionals at the company’s expense. The committee is tasked with overseeing the relationship with external auditors—covering appointments, remuneration, and independence—and ensuring that the provision of non-audit services does not impair objectivity. Members are also required to review the integrity of the company’s financial statements, including annual and interim reports, and evaluate major judgmental areas, adjustments from audits, and compliance with accounting standards.
The committee is responsible for monitoring internal control systems and risk management, coordinating with internal and external auditors, and reviewing the company’s financial and accounting policies. It will meet at least twice a year and keep full records of all meetings. The Terms of Reference further note that any conflicts with applicable laws or regulations are subject to the laws in force, and the document is available on both the company’s and the Hong Kong Stock Exchange’s websites.
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