- The board reviews and approves every land and conservation agreement transaction.
- However, the board may delegate decision-making authority on transactions if:
- It establishes written policies or has bylaw provisions that define the limits to the authority given to the delegated entity.
- The delegated entity provides timely notification in writing to the full board of any completed transactions.
- However, the board may delegate decision-making authority on transactions if:
Background
The board reviews and approves every land and conservation agreement transaction, and the board is provided with timely and adequate information prior to final approval. However, the board may delegate decision-making authority on transactions if it establishes policies defining the limits to that authority, the criteria for transactions, the procedures for managing conflicts of interest, and the timely notification of the full board of any completed transactions, and if the board periodically evaluates the effectiveness of these policies.
Land transactions are the primary business of a land trust. Because they often represent substantial costs, both in acquisition and in future management, the board should seriously consider its ultimate fiduciary responsibility when considering land projects. As such, the board should be informed about the land trust’s potential land transactions and must have the opportunity to act on all land transactions. In most land trusts, the full board reviews and approves every land transaction. In certain circumstances (mostly for large staffed organizations), after careful consideration and where consistent with applicable provincial law, the board may choose to empower a committee or staff to act on behalf of the board. In such cases, the board should adopt policies that clearly describe the overall objectives of the organization’s land transactions and define the committee or staff’s scope of authority, particularly in situations that may involve a conflict of interest. The board should regularly evaluate the effectiveness of such a process and monitor compliance with all limitations. If approval is delegated, the full board should be notified promptly of each transaction.