In each organisation a constitution or rules outline how an organisation is governed. It usually includes information on:
- how the members of the organisation are admitted
- the rights and obligations of members
- how the office-bearers and members of the governing body are elected or appointed
- how general meetings of members and meetings of the governing body are convened and conducted
- how the organisation is managed, especially its finances.
Boards
A board can also known as a management committee, council or trust and is the body of people given the power to supervise, manage or govern a company, organisation or group.
The board is accountable for the organisation’s major decisions. The role of a board is to:
- provide purpose, leadership, direction and strategy
- ensure the proper use and reporting of finances
- make sure the organisation’s operations are legal.
The board guides an organisation towards its goals and is responsible in most instances for:
- providing a clear and viable direction for the organisation
- formulating a mission and setting out a strategic vision
- carrying out risk management
- attending meetings and making informed decisions on key issues
- monitoring the implementation of plans, budgets, policies and decisions
- ensuring all legal and financial responsibilities are carried out
- selecting and overseeing the group’s CEO if the organisation has paid staff
- overseeing or carrying out fundraising
- advocating on behalf of the group to the community
- carrying the community’s views back to the group
- evaluating and improving its own effectiveness.
Some key board member positions are:
- Chairperson or President - offers leadership by chairing the committee’s meetings and preparing reports, signing off key documents and acting as a spokesperson for the organisation.
- Secretary - responsible for maintaining all non-financial records associated with the organisation, including the preparation and distribution of minutes, agendas and reports.
- Treasurer - attends to or is responsible for the banking of the organisation’s income, provides regular financial reports to the board, records all financial transactions and presents annual audited financial reports.
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Committees
It is common for boards to delegate certain aspects of their work to committees. The organisation’s constitution may specify which committees are required. Having committees allows the board to distribute their workload and enables the committee make recommendations for the board to consider.
Types of committees may include:
- budget and finance
- marketing and public relations
- fundraising
- risk management
- ethics.
The organisation may also have sub-committees to focus on a specialist subject area or field of interest for the organisation. Sub-committees may include community, youth, women’s or volunteer advisory groups.
Working parties generally bring people together to focus on a project such as:
- investigating ways of improving the efficiency of the organisation’s work practices
- establishing volunteer guidelines for obtaining mandatory police checks
- organising a one-off event.
Local Council Committees
Local Government councils often establish committees to help manage activities and functions. These committees are also known as Section 41 committees under the Local Government Act 1999.
Committee members may be elected members of the council, municipal officers or members of the public.
When a council establishes a committee it must be clear about the committee’s reporting and accountability requirements. All council committees are required to report to their council.
Some of the reasons councils establish committees may include:
- to inquire, report and sometimes make recommendations to the council on matters within the council's responsibilities
- to carry out a specific project or task on behalf of the council
- to manage or administer property, facilities or activities, on behalf of the council
- to oversee works on behalf of the council
- to exercise, perform or discharge delegated powers, functions or duties.
Council committees are not separate legal entities, so any liability lies with the council.
Subsidiaries
Council subsidiaries are formed on behalf of one council or group of councils to:
- provide services
- manage council property
- undertake commercial activities
A subsidiary has a separate legal identity from council.
Subsidiaries are corporate bodies with a board of management appointed by the council/s. The board is responsible for the administration of the affairs of the subsidiary.
Subsidiary boards may include people who are not council members.
More information
On this site
Resources for community organisations
Managing a community organisation
Frequently asked questions about community organisations
Other websites
Introduction to governance training module - Office for Volunteers
Joining a committee fact sheets- OCBA
Boards, Committees and Governance Centre - Our Community
Downloads
Protection for community board members (PDF 3.9MB)
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