How the Board Operates

Delegation

The Board should ensure that matters reserved for the Board are clearly identified and that necessary delegations are in place to enable the effective operation of the organisation.

A delegation is where a party with authority or power to do something authorises another party to act on the first party’s behalf. It is normal for Boards to delegate most of its powers to other parties, primarily the CEO, and sometimes to Committees.

Delegating powers or functions does not absolve the Board or its directors from accountability for the exercise of those powers or functions and the Board remains accountable for the actions of its delegates and sub-committees. 

A person or committee holding a delegation must take care to comply with the limits of the delegation, and any conditions placed on the delegation.