Legal Definitions - with power

Definition: A committee to which the referring body has delegated the necessary authority for acting on the business referred, usually without the need for a prior report to the referring body.

Example: In a company, the audit committee is appointed by the board to oversee the financial reporting process, select an independent auditor, and receive the audit. The committee member is financially literate and wholly independent, having no financial interest in the company, no executive position, and no familial relationship with any member of the company's management or a major shareholder. The audit committee has the power to act on the financial matters referred to them without the need for a prior report to the board.

Explanation: The example illustrates that the audit committee has the power to act on the financial matters referred to them without the need for a prior report to the board. The committee has been delegated the necessary authority to oversee the financial reporting process, select an independent auditor, and receive the audit. This delegation of power allows the committee to act independently and efficiently in carrying out its responsibilities.