LBMA Board Terms of Reference
Responsible for setting our strategic and business vision, the LBMA Board also scrutinises our performance, ensuring strong corporate governance and challenging us to deliver our targets and objectives.
Setting the standards, both in words and deeds, for how we conduct our work and the culture we promote, the LBMA Board operates under the terms of reference below. The LBMA Board also delegates some decision-making powers to the Chief Executive and Executive Leadership team. These include running benchmark subsidiary PMPL, sub-committee work, operational matters, marketing strategy, and personnel matters. This approach aims to enhance governance and delivery to support our members.
1. Strategy and management
- Approve LBMA’s long-term and short-term objectives and strategy.
- Ensure that the quality and integrity of the precious metals market is maintained.
- Identify and address potential threats to the precious metals market.
- Approve annual budgets and any material changes to them.
- Approve any material extension or cessation of LBMA’s activities.
- Approve any major changes to LBMA’s management, control structure or status.
2. Financial reporting and controls
- Approve the annual report and accounts, including corporate governance statements.
- Ensuring maintenance of good internal control and risk management.
- Approve any major expenditure that could materially impact on LBMA reserves.
- Approve any major acquisitions or disposals of fixed assets or operations.
3. Executive and non-executive appointments
- Approve changes to the structure, size and composition of the Board, within the powers granted in the Memorandum & Articles of Association.
- Select the Chairman, the Chief Executive, NEDs and other Board level appointments.
- Determine membership and Chairmanship of the Board Sub-Committees with delegated powers.
- Determine the remuneration of the NEDs, Chief Executive and key reports pay awards.
- Ensure provision of support or guidance for compliance with local employment laws.
5. Corporate governance
- Approve terms of reference of Board Sub-Committees with delegated powers.
- Receive reports from board Sub-Committees on their activities and where appropriate acting on recommendations.
- Review of the group’s overall corporate governance arrangements.
- Receive reports on the views of LBMA’s Members and key stakeholders.
An expert group of staff, referred to as the Executive, carries out work agreed by our Board and its sub-committees.
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