Articles

What are Related Party Transactions?

Related party transactions are a normal part of the business if your organisation works closely with other entities or individuals and enters into agreements. The Australian government’s regulations for related party transactions likely apply to you. Related party relationships are a normal part of doing business. However, when a person in a leadership position has ties to two entities the organisation conducts business or collaborates with, these relationships can affect the way each entity will manage money, make decisions, or create policies.

How Do Australians View the Leadership and Governance of the Charity Sector

Charities are at the heart of social ecosystems and play a vital role in building and sustaining flourishing communities. Yet, charities face several interlocking challenges that have only become more complex in a post-pandemic environment. In this context, charities are grappling with increased demand for services, financial sustainability, increasing job complexity, a declining volunteer workforce and the need to re-establish relationships with donors, all in the context of sustained impacts on the mental health, well-being and resilience of charity employees and leaders.

What Is Auspicing?

Auspicing is a fairly common practice for unregistered or unincorporated non-profits in Australian such as informal groups or new organisations that may not have legal standing on their own. This type of agreement may be a good fit if a group of individuals or a local club want to run a project or host an event such as a festival or exhibition, a community pilot, a local study group or youth club, or a national sporting competition.

Top-10 Business Continuity Tips that Won't Break the Bank

Don’t be ’too busy’ to make a Business Continuity Plan Regardless of the industry you operate in, you will be expected by customers, staff, suppliers, general public and other stakeholders, to be prepared for a potential disruption - whether it be caused by a power outage, staff shortage, cyber-attack, flood, earthquake, fire, network outage, supply chain issue, flu outbreak or other cause. For the sake of your business and stakeholders, it is paramount that you implement a Business Continuity Plan (BCP).

What is a Proprietary Limited Company (Pty Ltd)?

One of the most frequent legal structures Australian businesses choose is the proprietary limited company or Pty Ltd. Similar to other company forms such as a company limited by shares or an unlimited company, Pty Ltd entities operating in Australia are regulated by the Corporations Act 2001 and have legal obligations associated with the Australian Securities and Investments Commission and the Australian Taxation Office. These rules have a direct impact on organisational governance and profit distribution.

Illiquidity Vs Insolvency

A non-profit organisation’s financial health is vital to achieving its mission. As stewards of the organisation, board members must understand two key financial concepts - illiquidity and insolvency. On the surface, they may seem similar. But illiquidity and insolvency stem from different causes and have different implications. This article will explain what illiquidity and insolvency mean, their key differences, and provide real-world examples to illustrate how non-profit boards should interpret and respond to signs of financial distress.

Strategic Planning Principles and Practices

Accepting a position as a director requires a willingness to personally grow and develop one’s governance and leadership skills, experience and knowledge, and a commitment to allocating the necessary time to fulfil directors’ corporate governance roles and responsibilities. Strategic leadership is one of the four overarching governance responsibilities of a board; the most well-known manifestation of a board’s strategic leadership is the development and driving of a strategic plan, in partnership with the chief executive officer (CEO) and executives/senior managers.

School Governance 101

Schools face a number of challenges — and so do the boards that govern them. While concern about some of these challenges has fluctuated since 2014, high salary costs and school fees as well as compliance issues have remained top priorities for governors for almost a decade. Twelve key characteristics of effective school boards define healthy school governance and present opportunities to improve at every turn. By adopting most or all of these characteristics, schools can mitigate many of the issues they face today.

Difference between a Company Limited by Shares and Company Limited by Guarantee

What are the key differences between a company limited by shares and a company limited by guarantee? Is one better than the other? Under Australian law, there are two main types of company structures: proprietary companies and public companies. A closer look reveals that these businesses usually operate either as companies limited by shares (CLS) or companies limited by guarantee (CLG). The difference between the CLG vs CLS structure is primarily in the ways each approaches liability, voting and dividend rights, and share distribution.

The Importance of Government Engagement for Board Directors

Amongst finance, risk, strategy, oversight, compliance and share/stake holders, board directors could be forgiven for thinking engaging with government is an afterthought. Yet government engagement is one of the few areas that crosses over every single board director’s responsibility and should be an agenda item on every board meeting. Government engagement is a catch all term we started using almost a decade ago because we felt that terms like lobbying, advocacy and campaigning didn’t quite capture the importance, nuance and detail required to ensure government is aligned to your organisation.