Whether to pay directors for their service is a decision for each corporation to make.
The CATSI Act says that directors cannot be paid a director remuneration unless a corporation’s rule book says they can. Remuneration is payments for directors’ time (eg sitting fees), service and/or effort. It also includes allowances, bonuses, commissions and non‑cash benefits.
Corporations rely on people to do things on their behalf. Members give directors and other key decision-makers a significant level of control and responsibility for a corporation. So, directors and other key decision-makers directly influence the corporation’s success, legal compliance and reputation.
The duties keep directors loyal and accountable to the corporation. The duties are designed to make sure directors and other officers:
Delegating is a process of giving a task, authority or responsibility to another person. It helps you spread a workload to help get things done more efficiently.
A person who is authorised to use the powers on behalf of the board of directors is a delegate.
To delegate authority:
The board needs to understand and take into account the interests of members and other stakeholders. This is because the board is appointed by members to represent their interests, and drive the corporation’s financial performance, operational results and governance standards. Depending on the nature of their activities, some corporations have other stakeholders, such as funding bodies, an industry standards body, contract managers, customers, and employees.
