Howden Joinery Group Plc

Terms of Reference of the Nomination Committee

Last approved: 14 September 2017

1.

Membership

1.1 Members of the Committee shall be appointed by the Board and shall be made up of least three members, the majority of whom should be independent non-executive directors.
1.2 Only members of the Committee have the right to attend Committee meetings. However, other individuals such as the Chief Executive Officer and external advisers may be invited to attend for all or part of any meeting, as and when appropriate.
1.3 A director must have completed a formal induction programme, to be agreed by Chairman of the Board, prior to appointment to the Committee. Appointments to the Committee shall be for a period of up to three years, which may be extended by the Committee provided the director remains independent or is the Chairman of the Board.
1.4 The Board shall appoint the Committee Chairman who should be either the Chairman of the Board or an independent non-executive director. In the absence of the Committee Chairman and/or an appointed deputy, the remaining members present shall elect one of their number to chair the meeting. The Chairman of the Board shall not chair the Committee when it is dealing with the matter of succession to the chairmanship.

2.

Secretary

2.1 The Company Secretary shall act as the Secretary of the Committee.

3.

Quorum

3.1 The quorum necessary for the transaction of business shall be two, both of whom must be independent non-executive directors. A duly convened meeting of the Committee at which a quorum is present shall be competent to exercise all or any of the authorities, powers and discretions vested in or exercisable by the Committee.

4.

Meetings

  The Committee shall meet at least twice a year and at such times as the Chairman of the Committee shall require.

5.

Notice of Meetings

5.1 Meetings of the Committee shall be summoned by the Secretary of the Committee at the request of the Chairman of the Committee.
5.2 Unless otherwise agreed, notice of each meeting confirming the venue, time and date, together with an agenda of items to be discussed, shall be forwarded to each member of the Committee, any other person required to attend and all other non-executive directors, no later than five working days before the date of the meeting. Supporting papers shall be sent to Committee members and to other attendees as appropriate, at the same time.

6.

Minutes of Meetings

6.1 The Secretary shall minute the proceedings and resolutions of all Committee meetings, including the names of those present and in attendance.
6.2 Minutes of Committee meetings shall be circulated to all members of the Committee.

7.

Annual General Meeting

7.1 The Chairman of the Committee shall attend the Annual General Meeting prepared to respond to any shareholder questions on the Committee's activities.

8.

Duties

8.1 The Committee shall:
  8.1.1 regularly review the structure, size and composition (including the skills, knowledge, experience and diversity) required of the Board compared to its current position and make recommendations to the Board with regard to any changes;
  8.1.2 give full consideration to succession planning for directors and certain other senior executives in the course of its work, taking into account the challenges and opportunities facing the Company, and what skills and expertise are therefore needed on the Board in the future;
  8.1.3 keep up to date and fully informed about strategic issues and commercial changes affecting the Company and the market in which it operates;
  8.1.4 be responsible for identifying and nominating for the approval of the Board, candidates to fill Board vacancies as and when they arise;
  8.1.5 as part of the process for nominating candidates for appointment, obtain details of and review any interests the candidate may have which conflict or may conflict with the interests of the Company.  The Committee shall consider whether, despite any such conflict, there are nevertheless grounds for recommending the candidate for appointment and for the Board to authorise the relevant conflict.  The Committee shall as part of any proposal to the Board for appointment of the relevant candidate explain these grounds and make recommendation as to the terms and conditions on which any authorisation of the conflict should be given by the Board;
  8.1.6 before appointment is made by the Board, evaluate the balance of skills, knowledge and experience on the Board and in light of this evaluation prepare a description of the role and capabilities required for a particular appointment.  In identifying suitable candidates the Committee shall:
    8.1.6.1 use open advertising or the services of external advisors to facilitate the search;
    8.1.6.2 consider candidates from a wide range of backgrounds; and
    8.1.6.3 consider candidates on merit and against objective criteria and with due regard for the benefits of diversity on the board, including gender, taking care that appointees have enough time available to devote to the position.
  8.1.7 keep under review the leadership needs of the organisation, both executive and non-executive, with a view to ensuring the continued ability of the organisation to compete effectively in the marketplace;
  8.1.8 review annually the time required from non-executive directors.  Performance evaluation should be used to assess whether the non-executive directors are spending enough time to fulfil their duties;
  8.1.9 ensure that on appointment to the Board, non-executive directors receive a formal letter of appointment setting out clearly what is expected of them in terms of time commitment, committee service and involvement outside Board meetings;
  8.1.10 for the appointment of a Chairman, the Committee should prepare a job specification, including the time commitment expected. A proposed Chairman's other significant commitments should be disclosed to the Board before appointment and any changes to the Chairman's Commitments should be reported to the Board as they arise;
  8.1.11 work and liaise as necessary with all other Board committees.
8.2 The Committee shall also make recommendations to the Board concerning:
  8.2.1 formulating plans for succession for both executive and non-executive directors and in particular for the key roles of Chairman and Chief Executive (but see 8.2.7 below);
  8.2.2 suitable candidates for the role of senior independent director;
  8.2.3 membership of the Audit and Remuneration Committees, and any other Board Committees as appropriate, in consultation with the chairmen of those committees;
  8.2.4 the re-appointment of any non-executive director at the conclusion of their specified term of office having given due regard to their performance and ability to continue to contribute to the Board in the light of the knowledge, skills and experience required;
  8.2.5 the re-election by shareholders of any director under the annual re-election provisions of the Code or the ‘retirement by rotation' provisions in the Company's articles of association having due regard to their performance and ability to continue to contribute to the Board in the light of the knowledge, skills and experience required and the need for progressive refreshing of the Board;
  8.2.6 any matters relating to the continuation in office of any director at any time including the suspension or termination of service of an executive director as an employee of the Company subject to the provisions of the law and their service contract; and
  8.2.7 the appointment of any director to executive or other office other than to the positions of Chairman and Chief Executive, the recommendation for which would be considered at a meeting of the full Board.

9.

Reporting Responsibilities

9.1 The Committee Chairman shall report formally to the Board on its proceedings after each meeting on all matters within its duties and responsibilities.
9.2 The Committee shall make whatever recommendations to the Board it deems appropriate on any area within its remit where action or improvement is needed.
9.3 The Committee shall produce a report to be included in the annual report about its activities, the process used to make appointments and explain if external advice or open advertising has not been used. Where an external search agency has been used, it shall be identified in the annual report and a statement made as to whether it has any connection with the Company.
9.4 The report referred to in 9.3 above should include a statement of the Board's policy on diversity.

10.

Other Matters

The Committee shall:
10.1 at least once a year, review its own performance, constitution and terms of reference to ensure it is operating at maximum effectiveness and recommend any changes it considers necessary to the Board for approval;
10.2 have access to sufficient resources in order to carry out its duties, including access to the company secretariat for assistance as required;
10.3 be provided with appropriate and timely training, both in the form of an induction programme for new members and on an ongoing basis for all members;
10.4 give due consideration to laws and regulations, the provisions of the Code and the requirements of the UK Listing Authority's Listing, Prospectus and Disclosure and Transparency Rules and any other applicable rules, as appropriate.

11.

Authority

11.1 The Committee is authorised to seek any information it requires from any employee of the Company in order to perform its duties.
11.2 The Committee is authorised to obtain, at the Company's expense, outside legal or other professional advice on any matters within its terms of reference.