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The recognised capacity of an actor or body to commit an institution to a course of action. Authority enables decisions under uncertainty. It is not equivalent to ownership, not reducible to advice, and not constituted by shared values alone. Without explicit allocation, authority is vulnerable to displacement by constraints.
A family principal may own 100% of capital but lack decision authority when no one is authorised to decide once legal, reputational, and stakeholder concerns are raised. Ownership and authority are distinct.
CSFDAFO Section 2