BOARD CHARTER DEVELOPMENT
A Board Charter is required to clarify the respective roles of the Board and senior management and to assist in decision making processes in matters relating to an Organization. Below is a summary of the key terms of the Board Charter.
- Board Charter Development -
The purpose of the Board Charter is to clearly outline the structure of the Board and to define the role of the Board as a whole through the identification of a schedule of powers reserved solely for the Board of Directors.
The role of the Board is described as follows:- Provision of guidance on and approval of the strategy and performance of Organization;
- Monitoring the progress of the financial situation of Organization and other objectives;
- Approving and monitoring the progress of major investments;
- Oversight and approval of the risk, control and accountability systems;
- Monitoring compliance with legal, constitutional and ethical standards;
- Ensuring effective communication with all stakeholders.
All government ministries are managed under strategic plans, all donor funded agencies (NGOs in particular) need to present strategic plans to justify the receipt of funds from cooperating partners, and the Zambian private sector shows increasing demand for strategic planning as well.