The 'governance' of an organisation refers to the direction, control and accountability of an organisation. Particular legal obligations apply to the governance of organisations. Governance is undertaken by the committee or board of the organisation.
Governance can be distinguished from 'management' in an organisation. Generally, the role and responsibility of an organisation's board or committee is to govern the organisation, and the role and responsibility of the management or executive team is to manage the organisation. Some community organisations that may not have paid employees, or few members, can struggle to distinguish between the governance roles and management roles in an organisation. This distinction is very important.
Introduction to the role of board members
The Not-for-profit Law fact sheet on the role of board members has been prepared to help new board members understand their roles, so they can contribute effectively to the successful running of their organisation from day one.
The fact sheet covers:
- role of a board member
- legal oligations of board members
- personal liability of board members, and
- what board members should know about their organisation.