Two-tier board
A two-tier board structure separates a management board from a supervisory board. The management board carries out executive management, while the supervisory board performs oversight under the applicable governance framework. Rules concerning appointments, employee representation and membership differ between jurisdictions. The separation can support scrutiny but still needs clear information flow, competence and accountability.
Worked example
A management board develops and executes business plans. A distinct supervisory board appoints or oversees management and reviews performance within the powers established by the relevant system.
Common mistake
Do not equate an audit committee within a unitary board with a separate supervisory tier. The presence of two bodies alone does not establish the legal powers or effectiveness of either.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Supporting | September 2026–June 2027 |
| ACCA | SBL | Direct | September 2026–June 2027 |
| FIA | FBT | Supporting | September 2026–June 2027 |