ACCA Accountant In Business (F1) Certification Practice Exam

The responsibility for recommending members of the Board of Directors lies with the Nomination committee. This committee plays a crucial role in the governance structure of an organization, particularly in ensuring that the board is composed of individuals who possess the right skills, experience, and diversity needed to guide the company's direction effectively.

The Nomination committee is tasked with identifying and evaluating potential board candidates, considering factors such as their background, expertise, and alignment with the company’s strategic objectives. This process ensures that the board is equipped to oversee the management and protect shareholders' interests.

Other roles mentioned, such as the Director, Audit, and Security functions, each have their specific responsibilities within the organization. While Directors are responsible for overseeing the company and making decisions in the best interest of shareholders, they do not typically have the primary role of recommending new members. The Audit committee focuses on financial reporting and compliance issues, while the Security function relates to physical and informational security measures of the organization. Hence, their functions do not entail the recommendation of board members.

Thus, the correct answer underscores the critical function of the Nomination committee in maintaining an effective governance structure through the careful selection of board members.