BOC Hong Kong (Holdings) Limited (the “Company”) has released a comprehensive Audit Committee Mandate dated October 2025, further clarifying the committee’s purpose, roles, and responsibilities. The mandate outlines the Audit Committee’s core oversight areas, including the integrity of financial statements and reporting processes, effectiveness of risk management and internal control systems, and performance of both internal and external audit functions.

The mandate specifies that the Audit Committee is responsible for reviewing critical accounting policies, monitoring legal and regulatory compliance related to financial disclosures, and assessing any significant audit findings or unusual accounting items. The committee is also expected to examine and endorse annual and interim financial statements, evaluate dividend proposals against approved policies, and ensure proper whistleblowing arrangements for financial reporting or control issues.

According to the document, the committee’s structure is composed entirely of non-executive directors, with a majority of independent directors. Members must possess relevant expertise in finance or accounting to carry out the committee’s functions effectively. The appointment, remuneration, and appraisal of senior internal audit personnel fall under the committee’s authority, underscoring its significant role in strengthening corporate governance practices.

The new mandate grants the Audit Committee the power to require prompt and complete information from management, form sub-committees when warranted, and maintain direct communication with regulatory bodies. Regular performance appraisals and reviews of both the internal audit function and the corporate governance framework are stipulated to ensure a consistent and high standard of oversight.