The Audit Committee Chair cannot be a member of any committee that:

This ensures that the person auditing the loans (ACB Chair) is not the one who sanctioned them. The Audit Committee is tasked with the independent oversight of financial reporting, internal controls, and risk management. If the Chair of the Audit Committee is also on a committee that approves or sanctions credit exposures (e.g., a Credit Committee or Risk Management Committee), it creates a conflict of interest, as they would be reviewing or auditing decisions that they themselves, or the committee they are part of, authorized. Independence is a key requirement for the audit committee chair, who is typically an independent director.