Sub-committees

Proper organisation of the work of the Board is a prerequisite for the smooth operation of Landsbankinn and the Directors’ work. The establishment of sub-committees can improve procedures in the issues that the Board is obliged to attend to and can make its work more effective.

The Board assesses the need for establishing sub-committees according to the size and scope of the Bank at each time, and the composition of the Board. The Bank’s corporate governance statement must provide information on the establishment and appointment of sub-committees. 

Directors working in such specialised committees can concentrate better on the tasks entrusted to them than when the Board meets in its entirety. It is important that the sub-committees regularly inform the Board of the main results of their work. Sub-committees operate under the authority of the Board and must submit to the Board a report on their activities at least once a year. The Board of Landsbankinn is responsible for the appointment and activities of the sub-committees.

The Board issues formal rules of procedure for each sub-committee to make it easier for them and others to understand their roles and responsibilities. The rules of procedure shall state that new committee members receive instruction and information on the work and procedures of the relevant committee. Sub-committees, moreover, must ensure good communications with the bank’s management.

Board sub-committees must ensure that Directors are regularly provided with accurate information on the committees’ principal work. Such information needs to be in the form and of a quality determined by the Board. Information and data is to be available to Directors of the Board in good time for Board meetings, and between such meetings. All Directors must receive the same information. Moreover, information must be available when needed and be as up-to-date and accurate as possible. The Board of Landsbankinn should preferably determine the general rules applicable to information provision by the sub-committees in the Bank's operating rules.