Define your company’s limits of authority for specified positions and outline approval requirements for transactions, obligations and compliance with this three-sample policy. This tool is applicable to the corporate headquarters, subsidiaries and affiliates and covers various aspects such as expenditure authorization, capital and operating expenses, banking and investment matters, legal issues, and employment-related matters. By defining clear procedures and approval matrices, the policy aims to maintain consistency, accountability and compliance across the organization.  

It emphasizes the importance of obtaining proper authorization prior to committing company funds or assets and highlights the responsibilities of individuals in ensuring adherence to the policy. Additionally, the document addresses temporary delegations; compliance documentation; and the handling of related party transactions, foreign corrupt practices and environmental reviews. Our Delegation of Authority Policy ultimately aims to streamline decision-making processes, mitigate risks, and protect the company from unintended legal and commercial liabilities.

Sample procedures include:

• Corporate accounts payable will issue all approved revisions and maintain a file of current valid delegate approval authorizations.
• Capital expenditures for property, plant, equipment, capital stock and other noncurrent assets over specified dollar limits require corporate approval as outlined in the capital expenditure procedures.
• All capital expenditures are budgeted annually through the capital budget and submitted for approval to the management executives committee and board of directors.  
• Employees having delegate approval authorization may approve expenditures for capital items up to the total dollar amount in the capital expenditure procedures.