The Practicality of Nominating Committee in a Company

Abstract

Objective - This paper aims to determine the efficacy of Nominating Committee in a company considering several factors that are argued to undermine its functions. Methodology/Technique - his research adopts qualitative type of research method where the non-doctrinal approach is used. Findings - The independence of Nominating Committee in a company is affected by several factors hence rendering it less functional. Novelty - This paper highlights several factors that are argued to be undermining to the practicality of Nominating Committee in a company. The factors of social network and influence from the management are further discussed to verify the independence of Nominating Committee. Following the findings of this research, establishment of an independent body or panel outside the company to nominate directors is humbly proposed for further deliberations. Type of Paper - Conceptual Keywords: Corporate governance; Nominating Committee; directors; independence; Malaysia.