Boards often delegate some of their responsibilities and decisions to smaller specialist committees, so that areas such as finance, risk, nomination or other areas of special focus can receive sufficient time and expertise.

This section will examine committees in detail to enable your organisation to utilise them to their full potential. In particular, it will cover the following aspects of committees:

  • Definition
  • Purpose of committees
  • Skills and composition
  • Terms of reference
  • Reporting
  • Delegated authority and decision making
  • Committee meetings
  • Evaluating committee effectiveness

Specifically, it examines three committees that your organisation will find useful:

  • Audit committee
  • Remuneration committee
  • Nominations committee

Basics of committees

An introduction to the basics of setting up and running committees

Audit committee

The audit committee delivers oversight of internal and external audits and the financial reporting and controls operating within an organisation

Remuneration committee

Of all committees of the board, the remuneration committee has elements that are imperative in its successful functioning, including transparency of outcomes, clarity of deliverables and independence of action from the board or influencers

Nomination committee

The nomination committee sets the framework for the board itself through its recommendations for appointments, evaluations of composition, and planning for future succession

Other committees

Also known as ad hoc committees, these are often formed for a specific task, purpose or objective with clearly defined deliverables