Governance 101

If you have recently joined a Board, or perhaps you are looking for a refresher in Governance essentials, our Governance 101 Course is a helpful resource.

Hear from Partner, Steven Moe, as he introduces our Governance Course.

During this series we will cover:

Session 1: So, What is Governance Anyway?
Session 2: Why are Your Purposes so Critical?
Session 3: What are your Duties in Governance and What Liabilities are There?
Session 4: What is the Best Practise on Documents (Board Packs, Agendas and Minutes)?
Session 5: What is the Role of the Chairperson?

Video Sessions

Session 1: So, What is Governance Anyway?

Key Takeaways from Session 1

In Session 1, we cover the distinction between governance and management in organisations. Understanding this is essential for effective leadership in both businesses and charitable trusts.

Many organisations, especially smaller ones, struggle to maintain clear boundaries between governance and management roles.

While management deals with daily operations, governance focuses on the big picture and long-term strategy – taking a high-level view of an organisation’s direction and future challenges.

It’s likened to observing from a helicopter above a ship, focusing on strategic issues rather than immediate operational concerns. This approach ensures organisations stay on course and avoid potential ‘icebergs’ in their path.

While some overlap may occur in smaller entities, it’s crucial for those in governance roles to prioritise long-term strategic thinking.

Session 2: Why are Your Purposes so Critical?

Key Takeaways from Session 2

In Session 2, we explain the specific meaning of Purposes for charities in New Zealand. The Charities Act 2005 outlines four categories under which a charity can register; relieving poverty, advancing education, advancing religion, or other purposes beneficial to the community.

The purpose acts as the ‘steering wheel’ for a charity’s activities and direction and is typically recorded in the charity’s foundational document, such as a trust deed. A clear purpose helps with funding applications, explaining the charity’s mission to staff and volunteers, and attracting donors.

While charities can take various legal forms, including companies, incorporated societies, or charitable trusts, the purpose remains the essence of the charity and what they do.

Session 3: What are your Duties in Governance and What Liabilities are There?

Key Takeaways from Session 3

In Session 3, we discuss key liability concerns for charity board members and the importance of understanding organisational rules and knowing your duties.

Proper understanding of organisational rules and what is required of you is crucial for board members to advance the charity’s purpose and avoid liability issues.

It is important to know your rules – board members must familiarise themselves with the organisation’s governing documents. You must also act in good faith and are expected to operate honestly and in the best interests of the charity.

Session 4: What is the Best Practise on Documents (Board Packs, Agendas and Minutes)?

Key Takeaways from Session 4

In Session 4, we cover the importance of documenting board discussions and decisions through minutes and policies. These tools ensure transparency and continuity as board members rotate over time.

Minutes should capture key points discussed, important decisions made, conflict of interest considerations, and action items.

Policies complement founding documents by providing practical operational guidelines tailored to your organisation’s activities. They can vary based on your needs but may cover areas like child protection, health and safety, privacy, and funding allocation.

Session 5: What is the Role of the Chairperson?

Key Takeaways from Session 5

In Session 5, we discuss the importance of the Chair’s role in board governance.

The Chairperson plays a pivotal role in board governance, acting as a facilitator and liaison between the board and management. This key position requires emotional intelligence, effective communication, and the ability to ensure all voices are heard.

The Chair sets meeting agendas, facilitates discussions, and bridges the gap between governance and management. They are not managers but facilitators, ensuring all board members have the opportunity to contribute.