Board and governance policies · 01
Delegation of Authority framework
States what the board keeps, what it delegates, to whom, and up to what value — so that every decision in the organisation can be traced to an authority that existed when it was taken.
States what the board keeps, what it delegates, to whom, and up to what value — so that every decision in the organisation can be traced to an authority that existed when it was taken.
Start with a diagnostic of how decisions are actually taken today, then map that against the enabling Act, the MOI or constitution, the PFMA or MFMA where applicable, and the board’s resolutions. Build a tiered matrix from board to committee to chief executive and downwards, with financial thresholds and decision types; an approval workflow; sub-delegation rules; a reservation schedule of matters that may never be delegated; and a review trigger. Close with an implementation guide and a board resolution adopting it.
Three failures recur. A framework that delegates powers the enabling Act reserves to the board itself is void, and the decisions taken under it are open to review. Thresholds set in rands that were realistic four years ago are breached routinely and quietly. And a matrix with no sub-delegation rule means an executive’s authority evaporates the moment they go on leave.
The law it sits under
What governs this instrument.
For a public entity, section 56(2)(b) of the Public Finance Management Act 1 of 1999 provides that a delegation does not divest the accounting authority of the responsibility concerning the exercise of the delegated power. For a company, the board’s authority comes from section 66(1) of the Companies Act 71 of 2008. A power the empowering Act reserves to the body itself cannot be delegated at all, and a delegate cannot sub-delegate unless authorised.
Related pages, tools and documents
Where this instrument sits in the wider set, and the engagement that produces it.
Start here
Tell us the decision your organisation needs to make.
The first conversation is thirty minutes, confidential and free. You will leave it knowing which of our services you need and which you do not.