Give at least 3 reasons why BOD needs to establish committees. State at least 3 sentences in a paragraph
Board of Directors need to establish committees for different reason first Committees allow experts within the BOD to
focus on specific areas like finances or ethics This way, people who really understand these topics can make better
decisions in those areas. Second is BOD’s have a lot of tasks, and committees help spread out the work. For
example, one committee can handle executive pay, while the main BOD focuses on big-picture plans Lastly,
Committees act like watchdogs. They make sure the company follows the rules and behaves ethically. This helps
prevent problems and keeps the company on the right track. Committees formed to make collective decisions on
important matters.