Question

a dash committee is empowered to take management decisions?​

Answer 1

Explanation:

Australia May 2 2016

Given the importance of board committees to the corporate governance landscape, it is essential that boards of directors understand their right to delegate to, and rely on the decisions of, committees. This article examines those delegation and reliance rights and identifies the matters that boards should cover when establishing committees.

Overview

Board committees are commonly used by large companies to assist the board of directors to deal with, and make decisions on, complex or specialised matters.  They play an important role in a company’s corporate governance and enable directors to use their time more efficiently and effectively.

The ASX Corporate Governance Principles and Recommendations advocate the establishment of various board committees as part of a corporate governance framework, namely, an audit committee, a nomination committee, a remuneration committee and a risk committee.  These Principles and Recommendations also identify the suggested composition, operation and responsibility of these committees. Under the ASX Listing Rules, ASX listed entities are required to benchmark their corporate governance practices against these recommendations.1 Audit committees are mandatory for listed entities included in the S&P All Ordinaries Index2 and listed entities included in the S&P/ASX300 Index are also required to have a remuneration committee.3

As discussed in more detail in the following sections of this article:

The law supports the right of boards of directors to delegate functions and powers to board committees.

The board as a whole can rely upon the conclusions reached and powers exercised by a committee, subject to directors satisfying themselves on certain matters relating to the competency of the committee.

There are, nevertheless, certain matters that courts have indicated cannot be delegated by a board.

When a committee is established, the board of directors should clearly identify its composition, functions, delegated powers and decision making procedures.

Answer 2

Board committee is empowered to make management decisions

• The committee's goal is to make use of each board director's skillset, expertise and overall abilities.
• This is done in order to inform and educate the entire board on specific issues. Committees allow boards to break down their work into manageable blocks.
• Corporations often employ board committees in dealing with and making management decisions