b'Corporate governance report continuedBoard committeesThe Board delegates specific duties and responsibilities to certain committees and has established a Nominations Committee, an Audit and Risk Committee and a Remuneration Committee, as described more fully below, except in respect of the Remuneration Committee, whose report is set out on pages 65 to 68 of this Annual Report. The Company Secretary attends all Committee meetings. Subsequent to Susan Searles resignation on 2 July 2019, Ian Metcalfe became Chair of the Nominations Committee and rejoined the Audit and Risk Committee.Nominations CommitteeThe Nominations Committee is responsible for identifying and nominating members of the Board and recommending the composition of each committee of the Board, including the Chair of each committee, together with evaluating the balance of skills, knowledge, experience and independence of the Board. The Committee also considers succession planning for Executive Directors, Non-executive Directors and other seniorexecutives.During the year the Committee comprised Susan Searle as Chair and Ian Metcalfe and Dr Jonathan Pell until 2 July 2019, after which dateIan Metcalfe became Chair and the other Committee members were Dr Jonathan Pell and Caroline Plumb OBE. The Nominations Committee met once formally during the year and also met informally at other times. The formal meeting was fully attended.Audit and Risk CommitteeThe Audit and Risk Committee is responsible for monitoring the integrity of the Groups financial statements, reviewing significant financial reporting issues, reviewing the effectiveness of the Groups compliance, internal control and risk management systems and overseeing the relationship with the external statutory and CASS auditors (including advising on their appointment, agreeing the scope of the audits, agreeing audit fees and reviewing the audit findings). The Committee also reviews the provision of any non-audit services by the external statutory auditor.The Committee will monitor the need for a dedicated internal audit function, focusing on financial controls. An internal audit function already exists in respect of investment related compliance matters, under the independent leadership and direction of the Groups Compliance Director. The Compliance Director reports directly to the Committee on all findings.During the year the Committee comprised Dr Jonathan Pell as Chair, Susan Searle and Caroline Plumb OBE up until 2 July 2019, after which date Dr Jonathan Pell remained as Chair and the other Committee members were Caroline Plumb OBE and Ian Metcalfe. Executive Directors attend by invitation. The Committee met three times during the year under review at appropriate times in the financial reporting and audit cycle. It may also meet at other times if so required. It has unrestricted access to the Groups external auditor. The QCA Corporate Governance CodeFrom the date of our Admission to trading on AIM in December 2014, we have embedded robust corporate governance as part of our culture. Mercias governance framework is not static and will continue to evolve over time.Set out below is how Mercia complies with the 10 key principles set out in the QCA Code.Governance principles Compliant Explanation Further readingDeliver1.Establish a strategy The Strategic Report section of this Annual Report clearly explainsPages 2 to 55 of this growth and business modelMercias business model and strategy in detail, including how itAnnual Report and the which promoteexpects to create long-term value for shareholders. AIM Rule 26 section of long-term value forthe Groups websiteshareholders A key strand of Mercias strategy is its investment policy,which is included in the AIM Rule 26 section of its website atwww.mercia.co.uk.2.Seek to understand Mercias Executive Directors participate in institutional and retailPages 39 and 60 of this and meet shareholderinvestor roadshows throughout the year and following theAnnual Report and the needs andannouncement of its annual and interim results. The Groups ChairAIM Rule 26 section of expectations also meets with existing shareholders from time to time as do thethe Groups websiteExecutive Directors. Capital Market Days, to which all shareholders are invited, are held from time to time. The Group also uses its Annual General Meeting as an opportunity to communicate with its shareholders.3.Take into account Mercias Annual Report identifies its key stakeholders within thePages 44 to 45 of this wider stakeholder andResponsible Business section of this Annual Report and howAnnual Report and the social responsibilitiesseriously the Group takes its environmental, social andAIM Rule 26 section of and their implicationsgovernance responsibilities. the Groups websitefor long-term success62 Mercia Asset Management PLCAnnual Report and Accounts 2020'