Committee Approval
Adams Stirling PLC


QUESTION: Can a board place a spending item on the agenda of a regular board meeting and vote to pass it without referring it to the appropriate committee or using any other procedure?

ANSWER: Unless the governing documents state otherwise, neither budgeting nor spending issues are required to pass through committees before being reviewed and approved by the board of directors.

Board Procedures. Even if a prior board established a procedure that all spending proposals first be reviewed by a Finance Committee (or Budget Committee or Spending Committee, etc.), subsequent boards are not bound by those procedures. Internal board procedures created by one board can be altered or abandoned by any subsequent board.

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Adams Stirling PLC