Articles written By Better Boards

Company Structures (Australia)

https://www.aicd.com.au/board-of-directors/duties/liabilities-of-directors/organisation-definitions.html#anchortarget4 Companies in Australia operate under different structures regulated by the Corporations Act 2001. The main categories of company structures are private companies, public companies, not-for-profit organisations, and government entities. Private companies like proprietary companies have restrictions on ownership and fundraising while public companies can raise funds publicly. Not-for-profits pursue non-commercial objectives and government entities provide public services. The structure adopted depends on objectives like profit-making, community benefit, ownership and liability.

Majority

A “majority” refers to the specific number (or percentage) of votes from directors that are needed to pass a motion or make a decision. A majority is defined as more than 50% of the votes cast by the directors who are present at a meeting and entitled to vote. A majority is an important tool in all boardrooms because it is used to determine the outcome of decisions made by a board.

Quorum

The quorum is a decision making mechanism that any formal group or board can use to help ensure decisions made at their meetings are fair and democratic manner. It helps to maintain democratic process and means that a small number of members cannot make rouge decisions that are not in the best interests of the organisations. Without the quorum mechanism, some boards would not be able to effectively make decisions.

Board Calendar

A Board Calendar is an essential tool in every boardroom. The board calendar is a schedule of meetings, events and other activities intended to help a board of directors plan and manage its activities. A Board Calendar assists with providing structure to the Board’s activities in a given year thereby ensuring that each meeting is focused, everything is covered in a sensible order, and ultimately that nothing critical is missed.

What is an Indigenous Corporation?

When establishing a non-profit organisation specialising in providing programs or services to Aboriginal and Torres Strait groups, founding an Indigenous Corporation is a great option. An Indigenous Corporation is a specific type of organisational legal structure that can be used in Australia. Indigenous Corporations are overseen by the Office of the Registrar of Indigenous Corporations (ORIC), an independent statutory office appointed by the Minister for Indigenous Affairs under the Corporations (Aboriginal and Torres Strait Islander) Act 2006.

What is an Incorporated Association?

An incorporated association is one of several formal legal structures available to non-profit organisations in Australia. Incorporating your association can offer your members certain rights and legal benefits. The main benefit of incorporating as an association is that your members will have limited liability status and will be protected legally if you fail to meet your financial obligations or are sued for negligence. When establishing a non-profit organisation, founders can choose from a large range of legal formats.

Cooperatives in Australia: What are they?

Co-operatives in Australia come in several different forms. The co-op organisational structure may be the right one for you if your goal is to produce goods and services in an isolated community where the middleman is making it difficult for businesses to thrive or people to access affordable services. Co-ops in Australia may vary since each has its own unique purpose and membership. An organisation’s legal structure will determine the types of activities you are legally able to carry out and which government bodies it is required to seek registration from or report to.

Committee

A committee is a group of individuals appointed or elected to perform a specific task or to make decisions collectively. It can refer to a group in a not-for-profit, business, government, or other organisations. The members of a committee typically work together to discuss, debate, and make decisions on issues within their area of responsibility. Committees in not-for-profit organisations, sometimes call sub-committees, typically report to the board of directors and provide recommendations and suggestions on specific topics.

What is a Company Limited by Guarantee?

When establishing your non-profit organisation, you have several legal structure options to choose from, including an incorporated or unincorporated association, a cooperative, a charitable trust, or a company limited by guarantee (CLG). As a founder, the choice you make will determine the types of activities you can legally carry out. An organisation’s legal structure will inform the way reports and registration requirements are determined and regulated by government bodies and must be made clear during the registration process.

Understanding the Board/CEO Relationship

At the core of an organisation’s success is the relationship between the Board Chair and the CEO. As with many things, this relationship has been tested by the challenges of COVID and other significant changes in the operating context for not-profits. In a period of increasingly rapid change this relationship is therefore more important than ever. In this panel Gavin, Jane, Rainer and Caroline will draw on their extensive experience both in chief executive and board chair positions to demystify this most important relationship.