IT Governance

How Are Board Members Steering Corporate Governance?

Corporate board responsibilities have never been under constant review before now. The technical, social, geopolitical, and economic issues due to the global pandemic have triggered the need for reevaluating corporate governance practices. In this article at Business Daily, Cathy Mputhia defines corporate governance committee members’ authority, appointed chiefly by shareholders.

Basic Framework

Corporate governance is taking control of businesses by managing and monitoring factors that may hamper growth. Enterprises of all sizes must follow their corporate governance board. The board’s roles and responsibilities are determined based on company policies. The board of directors is influential in setting up committees, but only the key stakeholders can elect the core authorities. They have absolute power to nominate or withdraw committee members.

Delegating Roles

The board of directors decides the roles and work structure of the corporate governance committees. However, they can choose to conduct meetings separate from the regular discussions with the company board members. The corporate governance committee must always get approval from the board of directors before initiating serious actions or decisions. They must draft a detailed description of the same, which the committee head must present to the directors. It must contain facts and figures about the action/decision they are planning to take on which the board of directors must give their consent.

Allocating Tasks

Once approved, the board of directors can allocate tasks to the committee members. Those tasks might get further divided by their respective teams. The corporate governance committees offer an avenue within which team members can showcase their core skills and competencies, thereby achieving improved outputs or outcomes.

Once formed, the committee must regularly meet at least once a quarter to review emerging issues or address concerns in their directives. Click on the following link to read the original article: https://www.businessdailyafrica.com/bd/lifestyle/personal-finance/board-committees-drive-corporate-governance-3235576

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