Publicly traded companies are required to have three standing committees. Which of the following is not a required committee for a publicly traded company?

Publicly traded companies must adhere to guidelines set forth by regulatory bodies such as the Securities and Exchange Commission (SEC) and stock exchanges, which dictate the establishment of certain committees to ensure effective governance. Among these requirements, companies must have an audit committee, a compensation committee, and a nomination committee.

The audit committee plays a crucial role in overseeing the company’s financial reporting and disclosures, as well as the performance of the independent auditors. The compensation committee is responsible for determining the compensation of the company’s executives and ensuring it aligns with the company’s performance and goals. The nomination committee, on the other hand, is tasked with identifying and recommending candidates for the board of directors, helping to ensure that the board is composed of qualified individuals.

In contrast, the legal committee does not hold the same requirement as the other three committees. While companies may choose to have a legal committee or similar task-focused teams, it is not mandated by regulations for publicly traded companies. Thus, the absence of a legal committee from the list of required committees is what makes it the correct answer.