What term refers to the permanent subcommittee of the board composed of Outside Directors, Proxy Holders, or Voting Trustees and any directors with security clearances?

• A. Government Security Committee (GSC)
• B. Government Program
• C. Generating
• D. Government-to-Government Transfer

Answer: (A)

The main idea here is governance and security oversight. A permanent board subcommittee formed from Outside Directors, Proxy Holders, or Voting Trustees, plus any directors who hold security clearances, is designated to handle security matters at the board level. This body, the Government Security Committee, provides focused oversight of security policies, clearance processes, and risk governance, ensuring independent, security-minded governance separate from daily management.

The other terms don’t describe a board subcommittee dedicated to security governance. A Government Program is a broad initiative rather than a board committee; Generating relates to production, often of energy; Government-to-Government Transfer implies a specific intergovernmental transfer rather than a governance body.