How does the UK corporate governance code generally recommend committees be composed?

The recommendation that committees consist mostly of non-executive directors aligns with the UK corporate governance code's emphasis on promoting independence and objectivity in the decision-making processes of corporate bodies. Non-executive directors, who are not involved in the day-to-day management of the company, provide valuable oversight that can enhance the board's accountability and transparency.

This structure ensures that decisions are made with impartiality, as non-executive directors are less likely to have conflicts of interest that may arise from personal connections to the company's operations. As such, they can contribute a level of scrutiny needed for effective governance, especially in key areas such as audit, remuneration, and nomination committees, where independent judgment is crucial.

The emphasis on a non-executive dominant composition helps mitigate risks associated with groupthink, facilitates diverse perspectives, and fosters a culture of challenge within the boardroom, which is vital for sound corporate governance and strategic decision-making.