Division Composition and residency status of Comm - Life Insurance (prudential standard) determination No. 2 of 2006 - Prudential Standard LPS 510 - Governance - Composition and residency status of Committee members

Composition and residency status of CommComposition and residency status of Committee members

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Composition and residency status of Committee members

The Committee must comprise of at least five members appointed by the Board. Those members must include:

(a) at least one director of the Board of the EFLIC;

(b) the Principal Executive Officer (PEO) appointed by the EFLIC for its Australian branch under either subsections 20(4) or section 246 of the Life Insurance Act; and

A member cannot satisfy more than one of the composition requirements contained in subparagraphs 5(a), 5(b) and 5(c) (i.e. the director, PEO and independent members must all be separate individuals).
At least two of the Committee members must be ordinarily resident in Australia, one being the PEO and the other an independent member.
It should be noted that the definition of director contained in the Life Insurance Act, in relation to an EFLIC, is taken to refer to both members of the Committee and the directors of the EFLIC (except for certain provisions, notably sections 92, 230B and 245 of the Life Insurance Act, where only Committee members are being referred to).