SJM HOLDINGS (00880) has released an updated set of guidelines for its Nomination Committee. The new terms highlight the primary duty of identifying candidates for the board of directors, filling vacancies, and overseeing long-term succession to support the group’s strategic vision.

The committee is required to consist of at least three directors. A majority of its members must be independent non-executive directors, ensuring balanced perspectives. The chair of the board or an independent non-executive director will preside over committee meetings. Any member with a significant conflict of interest must abstain from voting, and such a member will not be counted in the meeting quorum for relevant discussions.

The document clarifies that the committee must annually review board structure, size, and composition. It is also responsible for recommending qualified individuals for directorships and assessing the independence of non-executive directors. Evaluating each director’s time commitment and existing roles forms part of this process.

To maintain effectiveness, the terms call for at least one meeting annually, alongside the possibility of additional sessions as needed. The committee is empowered to access various resources, including direct communication with management and independent professional advice, to carry out its responsibilities. The new terms also specify that the committee chair should attend the company’s annual general meeting to address related queries.

These updates, which will be reviewed annually, underline SJM HOLDINGS’ commitment to transparent governance and a robust nomination process for its board. The company secretary is required to maintain full meeting minutes, with a summary of key matters reported regularly to the board.