Cardiff on Tuesday released the results of the meeting, which had been played out amid a backdrop of some unrest after Mackay's head of recruitment Iain Moody was removed from his post last week.
Moody was replaced by 23-year-old Kazakhstani Alisher Apsalyamov, who is thought to be a friend of Cardiff owner Vincent Tan's son and has no known experience of top-class football.
Mackay will, however, have the final say over the Cardiff's transfers after it was unanimously agreed to back him with a restructure of the club's board with four new committees.
Most significantly a 'Nomination and Corporate Governance' committee will be headed by chairman Mehmet Dalman.
According to a Cardiff statement, the main responsibility of the committee will be "to support the manager, Malky Mackay, on all player purchases and sales.
"All transfer dealings will be conducted subject to the manager's final approval."
That will come as welcome news to Mackay after it was understood he was unhappy at Moody's removal, albeit without any threat of resigning his post.
Cardiff confirmed the board had "discussed the events of the last two weeks in detail" during Monday's meeting before making their recommendations.
It was also revealed that Tan had agreed to write off interest of approximately £5.8 million on previous loans made to the club while all future loans up to an aggregate value of £50 million would be interest free.
"All aspects and matters relating to the present and the future of the club were fully discussed," a statement read.
"In order for the club to grow and sustain its ability to be a competitive force in the Premier League, the board has made a number of decisions which will strengthen the club, support the executive team, manager and his staff and enhance shareholder return.
"Needless to say, the Board discussed the events of the last two weeks in detail.
"The board believes that these changes establish a solid foundation for the club to grow."
Cardiff City Supporters' Trust had earlier demanded greater transparency from the club.
Chairman Tim Hartley said: '''Bluebirds fans deserve a full explanation following the board meeting, including the reasoning behind the decision to appoint Alisher Apsalyamov as acting head of recruitment.
''The events of the last week at Cardiff demonstrate the need for a new approach to the ownership and governance of professional football clubs.
''Cardiff could make a start by acting in a more transparent way and by engaging and communicating with fans."
Source: PA
Source: PA