Institutionalization of Board Authority

ERA IV — Early Governance Consolidation
Governance Practice
1978

Boards transitioned from provisional stewards to entrenched centers of authority.

What Happened

As corporations moved beyond startup mode, boards formalized decision-making authority through bylaws, committee structures, and internal policies. What began as pragmatic leadership gradually became centralized governance, with fewer informal checks from shareholders or communities.

Why It Matters Today

Many modern governance debates stem from authority structures normalized during this era—structures that were never revisited once stabilized.

Related Patterns

Pattern 1: Finality Without Adaptation
Pattern 2: Authority Concentration

Related Governance Themes

Clearly Defined Fiduciary Roles and Duties
‍ Independent Review and Recusal Standards
Board Education and Governance Training

Sources

Primary Source
Secondary Source Link