| name | audit-compensation-charter |
| title | Audit and Compensation Committee Charter |
| description | Drafts board-adopted charters establishing Audit and Compensation Committees for U.S. corporations, covering composition, independence, delegated powers, meeting protocol, reporting, and annual review. Adapts for public (SEC/SOX/exchange) or private governance regimes. Use when creating or refreshing committee charters, preparing for IPO governance readiness, onboarding directors, or conducting governance cleanup. Trigger keywords: audit committee charter, compensation committee charter, board governance, SOX compliance, Rule 10A-3, exchange-standard committees. |
| author | CaseMark |
| author_url | https://github.com/CaseMark/skills/tree/main/skills/legal/audit-compensation-charter |
| license | Apache-2.0 |
| version | 0.1.0 |
| execution_mode | open |
| jurisdiction | us |
| practice | corporate |
| language | en |
| tags | ["agreement","drafting"] |
Audit and Compensation Committee Charter
Produces a board-resolution-adopted governance charter for Audit and Compensation Committees with enforceable duties, delegated powers, and compliance documentation.
Prerequisites
- Corporate documents — certificate of incorporation, bylaws, existing board resolutions
- Company profile — public vs. private, state of incorporation, exchange listing (if any), jurisdiction(s)
- Industry context — sector-specific regulatory overlay (banking, healthcare, energy, etc.)
- Director roster — independence status, financial-expert qualifications, term rotation model
- Audit context — internal audit function, external auditor history, material risk areas
- Compensation context — compensation philosophy, equity plans, officer agreements, clawback/severance framework
- Disclosure context (public) — proxy/SEC workflow, prior committee reports, filing practices
- Authority confirmation — whether bylaws and state law permit committee creation by board resolution
Quick Start
- Gather prerequisites above; confirm listing status before applying exchange rules.
- Complete the regime map (Step 1 below).
- Draft charter sections in the prescribed order (Step 2).
- Append compliance checklist; resolve every item before delivery.
Workflow
Step 1 — Regime Map
Determine the regulatory baseline before drafting:
| Input | Determination |
|---|
| Company type | Public vs. private; if public: exchange + SEC regime |
| Directors | Independence baseline + required expertise (financial expert) |
| State law | Statutory authority for board committees and fiduciary duties |
| Audit governance | Internal audit scope, auditor relationship, SOX/independence posture |
| Compensation governance | Equity and officer pay exposure, clawbacks, Section 280G sensitivity |
Step 2 — Draft Charter Sections
Use this section order:
| Section | Required Content |
|---|
| Preamble | Board adoption language, purpose, hierarchy, relationship to bylaws |
