Legal Definitions - delegated power

Delegated power refers to the authority or right to act that has been formally transferred from a higher entity or body to a lower one. The entity that originally possesses the power (the delegator) grants a portion of that power to another entity (the delegatee) to perform specific functions or make certain decisions on its behalf. This transfer of power is typically limited in scope and purpose, and the delegator usually retains ultimate oversight and the ability to revoke or modify the delegated authority.

• Example 1: Government Agency Rule-Making

  A national legislature passes a broad environmental protection law, outlining general goals for clean air and water. Instead of detailing every specific technical requirement, the law grants the Environmental Protection Agency (EPA) the authority to create detailed regulations regarding permissible levels of pollutants, monitoring requirements for industries, and enforcement procedures. The EPA then issues these specific rules, which have the force of law.

  This illustrates delegated power because the legislature, which holds the primary law-making authority, has transferred a portion of that power to the EPA. The EPA exercises this delegated power by developing specific regulations to implement the broader law, operating within the boundaries and intent set by the original legislative act.

• Example 2: Corporate Management

  The Board of Directors of a large technology company is responsible for the overall strategic direction and governance of the corporation. The Board formally delegates the day-to-day operational management, hiring decisions, and executive decision-making authority to the Chief Executive Officer (CEO).

  Here, the Board of Directors possesses the ultimate authority to run the company. By delegating power to the CEO, they empower the CEO to manage employees, make business decisions, and execute the company's strategy. The CEO operates under this delegated power, accountable to the Board, which retains the right to oversee and, if necessary, revoke or modify the delegated authority.

• Example 3: Local Planning Commission

  A city council, which has the primary legislative and administrative authority for the city, establishes a local planning commission. The council then delegates to this commission the power to review and approve minor variances to zoning ordinances for residential properties, provided these variances meet specific criteria outlined in the city's zoning code.

  This demonstrates delegated power because the city council, holding the fundamental power to govern the city, has transferred a specific, limited authority to the planning commission. This allows the commission to handle routine decisions related to zoning efficiently, freeing the council to focus on broader policy matters, while the commission operates strictly within the parameters of the power delegated to it by the council.