BOARD COMMITTEES

The Board offers strategic leadership and direction through regular meetings wherein strategies are determined to ensure the proper functionality of company operations. The effectiveness of the board to a large extent impacts the performance of a company.

The organization may decide to use independent directors or outside expertise who may wish to form committees to facilitate discussions with the management outside regular board meetings in relation to particular areas such as budgeting and risk management of the overall organization.

The committees might be organized either as Standing committees or operating committees, these are committees that a board uses continually to run the organization’s everyday affairs or they may choose to have an Ad hoc committee which is formed for a limited period to address specific needs that might arise in the organization.

A BOARD COMMITTEE CHARTER

The board committee charter is a document that outlines the specific responsibilities and expectations of the committee to the board. The charter ensures that there are correct processes and frameworks are in place to allow the components of the governance system to operate properly. The document typically defines the committee’s limits of authority and any identified timeframes. 

When developing a board committee charter, the board of directors should keep in mind that the committee’s work is primarily advisory in nature. The charter should detail the types of recommendations the board is looking for and define the committees’ authority, whether it’s expressed or implied for the overall good of the organization

ROLES OF THE BOARD COMMITTEES

• Advisory role they assist the boards in carrying out their work by providing expertise and advice in selected areas eg finance and risk management, Governance and strategic positioning of the organization.
• They report on various operational and financial performance in the organization and progress against the organization’s overall strategic plan.
• On Business development, they update the board on markets, competitors, customers and investors and strategic business units that the organization can venture in to increase its presence in various regions.
• They update the board on Progress on strategic issues once they conduct an +`in-depth review on strategic issues that affect the organization.
• Developments on important people issues, they suggest to the board on way the organization can acquire, retain, develop and retain competent staff in order for the organization to maintain its competitive edge.

TYPES BOARD COMMITTEES

• Audit Committee– Audit Committee is tasked with checking the work of the Finance Committee and the treasurer in overseeing the financial management of the association.
• Governance Committee– They are accountable for the board’s and the company’s governance guidelines and policies. They recommend action to the board for structural changes to ensure the company is in compliance with its legal and fiduciary duties.
• Human Resource Committee- They are in charge of developing HR policies and suggest to the board on way the organization can acquire, retain, develop and retain competent staff in order for the organization to maintain its competitive edge.
• Finance Committee– this committee oversees staff’s preparation of the annual budget and the performance of the association in meeting its budgeted revenues and expenses.

How we can help

We shall be pleased to assist your company in setting up board committees depending on the nature of your company. The main aim of the process if to align the objectives and operations of the Board to the corporate governance best practices.

     Kindly get in touch with us for further discussions.