Committee
A committee is a group given a defined purpose, membership and responsibilities to carry out work collectively. It may make decisions within delegated authority, provide advice or oversee particular matters. Clear terms of reference establish its remit, reporting arrangements and limits. Committees can bring diverse expertise and shared scrutiny, but may also delay decisions, dilute individual responsibility or be dominated by a few members.
Worked example
A board establishes a remuneration committee to review executive pay proposals and make recommendations under its terms of reference. The committee reports its conclusions to the board rather than assuming unlimited authority over every employment decision.
Common mistake
A committee’s existence does not itself prove effective oversight. Assess its information, skills, independence where relevant and follow-through.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Direct | September 2026–June 2027 |
| ACCA | SBL | Direct | September 2026–June 2027 |
| FIA | FBT | Direct | September 2026–June 2027 |