Articles written By Better Boards

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.

Operating Plan

An operating plan is a strategic document that describes the day-to-day operations of a business or organisation. Operating plans include details about the tasks that will need to be completed to reach operational objectives and the responsibilities each team member will be assigned. The goal of the plan is to define how each role in the organisation will work collectively to achieve the vision. In addition to naming the individuals responsible for fulfilling the work, clear deadlines for each task and a description of any costs related to the work must be included in the plan.

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.

Strengthening Your Governance & Leadership

Over the last 10 - 15 years an ever increasing number of Not For Profit and Social Purpose governing bodies, be they Boards of Directors, Committees of Management or similar entities have significantly developed or improved many elements and processes of their governance and leadership; in essence moving from various traditional governance models to a variety of contemporary governance models. This webinar is squarely focused on assisting leaders of those governing bodies which are either seeking to consolidate their position of contemporary governance or commence the journey to exemplary governance.

What is a Proprietary Limited Company (Pty Ltd)?

Jump to Section What is a Proprietary Limited Company? Pty Ltd Characteristics Difference between Ltd and Pty Ltd Benefits of Forming a Pty Ltd in Australia How to Set Up a Pty Ltd Company Pty Ltd and the Corporations Act 2001 Additional Resources References 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.

Mergers & Amalgamations ... the realities & practicalities

Is your board and executives/senior management team considering a merger or amalgamation, or been approached by another organisation to amalgamate or merge? The big picture forces and trends of the industries/sectors in which community business (NFPs) operate, along with government reform, challenging economic conditions, financial viability or sustainability, increasing regulation and workforce challenges are propelling leaders to consider the most likely strategic scenario for their organisation and therein the organisation’s strategic options to achieve this and fulfil vision and mission; ensuring services continue to have impact in communities they serve.

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.

Materiality

Materiality is a multifaceted concept warranting a comprehensive understanding by directors. This in-depth article examines materiality across legal, governance, accounting, and financial contexts. It provides extensive analysis of materiality principles, standards, quantitative thresholds, qualitative criteria, and real-world applications. With thoughtful frameworks and case studies, this guide aims to empower professionals and organisations to make sound judgements in regards to materiality . Defining Materiality At its foundations, materiality refers to the relative importance, relevance and significance of specific information or issues in relation to a given question, evaluation, judgment or decision.

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.

Winding Up an NFP – Practical Tips

Winding up can be a tricky area, requiring a sustained effort and engagement between the Board, management and stakeholders to meet the various requirements involved. It is critical to ensure that the process is planned and implemented properly. This session will look at the reasons you might wind up an NFP, the steps to follow and issues to be aware of. In this session Jason will: Explore reasons you might wind up an NFP Consider transfer of assets and successor organisations Examine key requirements found in NFP Constitutions and at law Provide details of the timing, paperwork and steps to be followed Consider the worst case scenario of insolvency and Director liability This presentation will provide attendees with the tools to navigate the winding up process.