Board committee members refer to the body of chosen individuals in an organization or a company with legal authority fiduciary role to govern all activities that take place within the organization. For every good governance structure, there has to be an effective Board and Committee members. It’s the responsibility of the Board to monitor the internal activities though guidance of the long-term strategies and goals set by following on the performance against the set standards. The failure of most companies such as the Deloitte therefore always arises when the Board fails to fulfill some of its responsibilities (Lawal, 2012). A good example is the composition of the Deloitte Board members including the Chairperson of the board, the Chief Executive Officer, Global Chief Executive Officer, Secretaryand Treasurer among other board members.
In many occasions, the Board and other Committee members always operate out of sight and only hold weekly or monthly meetings with other employees to oversee the operations of the company. Due to the fact that most of the Board meetings are always held in enclosed places, there is always no transparency in whatever they discuss and this therefore calls for a lot of trust from other employees of the company or the organization. Uncertainty being a very bad aspect in making of investment decisions, Board and Committee meetings should therefore be taken seriously to overcome the financial crisis that may arise (Barroso, Villegas & Pérez, 2011).
Despite the fact that most of the Board practices cannot be legally binding or regulated by some form of law, it’s important to come up with some legal and regulatory requirements that can aid in the adoption and consideration of good acts that are acceptable. The Corporate Governance Institutes (CGIs) were therefore treated to monitor and control all the Boards and Committees to ensure that they comply. The CGIs are therefore very critical in the monitoring and promotion of practices and activities that are within their law and accepted by a number of people and organizations (Long, 2006).
Corporate governance and other frameworks that have laws and regulating bodies should participate in overseeing the shortcomings of any organization. Responsibility and diligence of the board members is very critical in the preparation of board meetings in order to provide sufficient materials to the Board members on time so that they can prepare to play their roles effectively. Other Board and Committee members have developed some web-based governance systems where they can gather information so easily and faster. The Directors should therefore access the information at least three days before they hold a meeting. This the method adopted by most of the companies (Christensen, Kent, & Stewart, 2010).
The board chooses the chief executive officer who is usually the head of the board and he or she is responsible for giving strategic direction on what should be either done or avoided. He is the chairman of the company. The board runs and functions according to the rules and laws governing that particular organization. The chief executive officer of Deloitte for instance controls the activities of the board of the company. He ensures that all board members attend meetings whenever they are planned. However, if some members have some apologies, they should be presented earlier before the due date of the meeting. A normal board of committee should have at most twenty five members. Modern boards have adapted much less members of the committee for reasons such as to maintain privacy and for convenience purposes. Some boards have as less as seven members. Recently, Deloitte had 20 members of the board.
The treasurer is another major participant of the board of Deloitte organization is the treasurer. It is the duty of the treasurer to keep all funds of the company securely and privately. Earlier such funds were stored by individuals. But with modern technology, money is nowadays stored in banks since they are more secure. Some of the petty cash which is needed for minor activities within the organization can be stored as cash in hand. The treasurer is to some extent liable to any embezzlement of misuse of organizational funds. He or she should keep records of all money received and given out. Together with other members of the committee, they decide what amount to pay the workers, and allocate money to the bank accounts of such workers (Singh, 2015).
The secretary is another important composition of the board. He or she is responsible for recording activities and issues discussed by the board, for future reference. He or she writes minutes, which show the proceedings and discussions of the board. Everything that the board discusses is taken down by the secretary for future reference. Additionally, the secretary reads the minutes of the previous meeting, to the board, when they meet for that day’s meeting. With the assistance of the chairman, they sign the minutes to confirm that all what is written is true (Gruber & Kamin, 2015). If there are any changes on the day which the board should meet, the secretary, assisted by the vice chairman, are responsible for informing the other members of the board. For instance, the secretary of Deloitte keeps record of all minutes and reads or presents them whenever asked to, or when they have a online meeting, or when holding meeting physically on specified halls.
All other members of the board are usually there in the meeting as representatives of various departments of the organization. Each of them is present in the board to present the views, ideas and grievances of each department (VAN KESSEL, 2015). They express what their departments need, suggest or hate. This helps to make sure that all departments in the organization work well and with unity.
In conclusion, responsibilities and other duties of the Board or Committee members are well spelt in the laws and regulations. However, other jurisdictions require more explanation of the general responsibilities whereas others only put more focus on the legally binding duties. The liability of the Board members and the Board itself is usually well spent in the jurisdiction even though very less information is always available on the liability provision. It’s therefore recommended that continuous training be done to the board members not present in the meetings held for effective corporation and governance according to the set frameworks. This makes the Directors and the Board members to be professionally well versed with stronger capacity in exercising their duties.
Barroso, C., Villegas, M. M., & Pérez?Calero, L. (2011).Board influence on a firm's internationalization.Corporate Governance: An International Review, 19(4), 351-367.
Christensen, J., Kent, P., & Stewart, J. (2010).Corporate governance and company performance in Australia.Australian Accounting Review, 20(4), 372-386.
Gruber, J. W., & Kamin, S. B. (2015). The corporate saving glut in the aftermath of the global financial crisis.
Lawal, B. (2012). Board dynamics and corporate performance: review of literature, and empirical challenges. International Journal of Economics and Finance, 4(1), 22.
Long, T. (2006). This year’s model: Influences on board and director evaluation. Corporate Governance: An International Review, 14(6), 547-557.
VAN KESSEL, I. N. E. K. E. (2015). The United Democratic Front and Its Legacy after South Africa’s Transition to Democracy. Movements in Times of Democratic Transition, 216.
Singh, S. F. (2015). Social sorting as ‘social transformation’: Credit scoring and the reproduction of populations as risks in South Africa. Security Dialogue, 46(4), 365-383.