ACA ICAEW Tax Compliance Practice Exam

The primary function of the nomination committee is indeed to handle appointments and board evaluations. This committee plays a crucial role in ensuring that the right individuals are appointed to key positions within the organization, particularly to the board of directors. They are responsible for identifying, evaluating, and recommending candidates for board membership, ensuring that the board has the necessary skills and diversity to effectively govern the organization.

Beyond appointments, the nomination committee typically also evaluates the performance of existing board members, facilitating a review process that assesses their contributions and effectiveness. This evaluation ensures that the board maintains high standards of governance and continues to serve the best interests of the company.

In contrast, the other options represent functions that are outside the primary responsibilities of a nomination committee. While managing finances, overseeing compliance with laws, and representing shareholders' interests are critical functions within a company, they generally fall under the responsibilities of other committees or the board as a whole rather than the nomination committee specifically.