Section 131: Delegation of powers
consolidated text (as at 2018, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.
131. Delegation of powers
(1) Subject to any restriction in the constitution of the company, the
Board of a company may delegate to a committee of directors, a director or
employee of the company, or any other person, any one or more of its
powers other than its powers under any section specified in the Seventh
Schedule.
(2) A Board that delegates a power under subsection (1) shall be responsible for the exercise of the power by the delegate as if the power had been
exercised by the Board, unless the Board—
(a) believed on reasonable grounds at all times before the exercise
of the power that the delegate would exercise the power in conformity with the duties imposed on directors of the company by
this Act and the company’s constitution; and
(b) has monitored, by means of reasonable methods properly used,
the exercise of the power by the delegate.
Sub-Part C – Appointment and Removal of Directors
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Questions this section answers
- Can the board delegate its powers to an employee or committee?
- Is the board still responsible if it delegates a power to someone else?