Matters reserved for the board

Abstract

How do effective directors ensure the matters reserved for the board they serve are clear? Based on a framework of global corporate governance best practice, which can be used in all organisations anywhere in the world, this chapter of Questions To Ask (QTA) in the boardroom gives a high-level but succinct introduction to matters reserved for the board. All directors should ensure that there is complete clarity of the matters reserved for the board and of the delegated authority given to the executives. Ideally both will be paid out clearly in two separate documents referred to as “Matters Reserved for the Board” and “Delegation of Authority.” The chapter considers matters reserved within different governance structures such as unitary boards and two-tier boards, and the countries adopting the different structures. The chapter’s introduction leads into outlining the key Questions To Ask in the boardroom, giving the reader further insight into how to initiate discussions about the practical details requiring the attention of the board.