Need for the Association
We serve the audit committees of public companies, private companies and nonprofit organizations. We are managed by current and former audit committee chairs and corporate governance experts.
Audit committees are under increasing pressure from shareholder groups and government regulatory authorities to oversee management in order to prevent corporate corruption. Audit committees of public companies have been given an array of new powers and responsibilities under the Sarbanes-Oxley Act of 2002 and rules adopted by the Securities and Exchange Commission, the New York Stock Exchange, and the Nasdaq Stock Market. Audit committee members must not only fully understand these powers and responsibilities, they must develop best practices in exercising them in an environment where little clear guidance exists and where new developments occur on almost a weekly basis.
Nonprofit organizations are likewise being pressured by contributors and regulators to develop good corporate governance practices, including the development of effective audit committees. Accordingly, the AACMI has created a division solely for nonprofit audit committee members.
Audit committee members can protect themselves against personal liability by developing and implementing policies and procedures which represent national best practices. The Association of Audit Committee Members, Inc. (the AACMI), a non-profit organization, was formed to assist audit committee members in meeting these challenges through an organization independent of the public companies they serve, independent of any accounting firms, and controlled predominately by chairmen of audit committees.
The AACMI promotes the professional interests of individuals who serve as members of audit committees by:
- developing and disseminating information of interest to audit committee members on a real-time basis;
- providing educational materials and initiatives to enhance the understanding of the duties and responsibilities of audit committee members;
- recommending policies and procedures which permit audit committee members to fulfill their duties and responsibilities and to protect themselves from personal liability;
- assisting members to obtain second opinions on difficult accounting and legal issues; and
- fostering the development of "best practices" by facilitating the exchange of information among audit committee members and through educational materials and initiatives.
Form of Organization
The AACMI is a Delaware not-for-profit entity intended to qualify under Section 501(c)(6) of the Internal Revenue Code of 1986.
The principal source of funding for the organization will be member dues, which will be paid by the companies on whose audit committees AACMI members serve. Annual dues for members are $1,000 per year, per public company (includes all directors and management), and $500 per private or not-for-profit organization (including all directors and management). Additional funding may be obtained from corporate sponsorships, sales of publications, and advertising revenue.
The Founding Members of the AACMI are: Allen R. Freedman, Roderick M. Hills (former SEC Chair, deceased), Frederick D. Lipman and Richard R. Roedel.