Audit Committee Charter:
Purpose of Committee
The purpose of the Audit Committee (the “Committee”) of the Board of Directors (the “Board”) of Universal Mfg. Co. (the “Company”) is to:
The Committee shall consist of no fewer than three members of the Board. A majority of the members of the Committee shall each have been determined by the Board to be “independent” based on a standard of reasonableness and common understanding and usage of the term. The Board shall also determine that each member is “financially literate” in that each member shall be able to read and comprehend the Financial Statements of the Company. If the Board determines that a member of the Committee is an audit committee financial expert, it may presume that such member has accounting or related financial management expertise. No member of the Committee may (except in his or her capacity as a member of the Committee, the Board or any other Board committee) receive, directly or indirectly, any consulting, advisory or other compensatory fee from the Company, other than fixed amounts of compensation under a retirement plan (including deferred compensation) for prior service with the Company (provided that such compensation is not contingent in any way on continued service).
Members shall be appointed by the Board based on the recommendations of the Corporate Governance and Nominating Committee and shall serve at the pleasure of the Board and for such term or terms as the Board may determine.
Committee Structure and Operations
The Board, taking into account the views of the Chairman of the Board, shall designate one member of the Committee as its chairperson. The Committee shall meet at least two times per year, with further meetings to occur, or actions to be taken by unanimous written consent, when deemed necessary or desirable by the Committee or its chairperson.
The Committee may invite such members of management and other persons to its meetings as it may deem desirable or appropriate. The Committee shall report regularly to the Board summarizing the Committee’s actions and any significant issues considered by the Committee.
Committee Duties and Responsibilities
The following are the duties and responsibilities of the Committee:
The Committee shall produce the following report and evaluation and provide them to the Board:
Resources and Authority of the Committee
The chairperson of the Committee shall liaise with Management as the chairperson of the Committee may deem appropriate. The Committee shall have the resources and authority appropriate to discharge its duties and responsibilities, including the authority to select, retain, terminate, and approve the fees and other retention terms of special or independent counsel, accountants or other experts, as it deems appropriate, without seeking approval of the Board or management.