Which mechanism helps ensure that a board does not exceed its granted authority?

• A. Defined governance roles and delegated authority.
• B. Frequent informal meetings.
• C. Ad hoc committee decisions.
• D. Management-led oversight.

Answer: (A)

Clear governance boundaries and formal delegation keep the board within its granted authority. When roles are defined, the board focuses on policy, strategic oversight, and fiduciary responsibilities, while management carries out day-to-day operations within clearly spelled-out limits. Delegated authority provides specific boundaries—what decisions management can make, what requires board approval, and how and when progress is reported. This setup creates accountability, prevents scope creep, and ensures decisions are made at the appropriate level with proper oversight and traceability.

Others don’t fit as well because informal meetings don’t establish binding boundaries and can lead to ad hoc, unrecorded decisions; ad hoc committees can bypass standard delegation and governance processes; and management-led oversight can undermine board independence and the separation of governance from administration.