The oversight function of corporate governance is performed by the company's board of directors and its designated committees. Boards of directors perform their advisory and oversight function through well-structured, planned, and assigned committees to take advantage of the expertise of all the directors. Board committee formations and assignments depend on the size of the company, its board, and assumed responsibilities. Committee members address relevant issues and make recommendations to the entire board for final approval. Board committees normally function independently from each other and are provided with sufficient authority, resources, and assigned responsibilities in assisting the entire board.
The primary objectives of this chapter are to