Your constitution defines the rules by which your Not for Profit organisation is legally able to operate. It is important that those rules represent what you do and that they are accurate and up-to-date. How do you respond to the ten questions below?
- Have you reviewed your constitution in the past 2 years?
- Do the objects represent what you do?
- Are the membership provisions working?
- Do you have the right process to elect Board/Committee members?
- Does your Board/Committee have the right skills mix?
- Are your general meeting rules clear and understood?
- Where applicable, does your constitution assertively reflect your PBI or DGR endorsements?
- Is your constitution conforming to the legislation under which it is created?
- Are dispute resolutions, proxies and conflicts of interest considered within your constitution?
- Is your constitution supported with effective governance policies and procedures?
If your responses are “unsure” or “no” to more than 2 – 3 questions then you should consider reviewing your constitution to ensure it is compliant with the legislation under which it was created, and that it uses present day language.
You may also be asking the question “why is it important to revise the constitution?” The constitution is the set of rules that specify the reason your organisation is established as a legal entity under your State association’s incorporation Act, the Commonwealth’s Corporations [Aboriginal and Torres Strait Islander] Act 2006, or the Commonwealth’s Corporations Act 2001. It is a statement of how you do business. It is the basis upon which your Board/Committee recognises its governance responsibilities. Therefore, it is important that you take the time and effort to ensure your constitution is working for you.
CBB has offered consultancy services for organisations on strategic projects for almost three decades. Get in touch us via:
Phone: 1300 284 364