CGOV.4:5.1 - A board receives an investment after the choice has been made

In a constructed manufacturer, investment above 500 is reserved to the board. Management can investigate alternatives but cannot commit that expenditure. A proposal for 700 arrives with a supplier selected and a promised delivery date, while the board has seen neither a smaller option nor the consequences of postponement.

The missing contribution is preparation for a real choice. The repaired design has management bring the alternatives, financial consequences and unresolved technical assumptions before making a commitment. A relevant specialist answers the technical question. The board considers the reserved investment; management selects the implementation details within the resulting decision and its existing authority.

The result is this proposed exchange and allocation. It does not establish that the board has approved 700. Nor does it require directors to approve every purchase in the ensuing project.