Good Governance Sl


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Good Governance Sl

  1. 1. 5/13/2010 What will we cover today? 1. What is ‘good governance’? How has governance evolved in  the club industry? y 2. Why should clubs create a board charter? 3. What  did IPART recommend? 4. Where should clubs communicate their board charter? 1
  2. 2. 5/13/2010 Is there a definition? • There is no express prescriptive legal obligation whether under the  Corporation Act 2001 or elsewhere under statute or common law to  effect good corporate governance.  Australian Institute of Company Directors A t li I tit t f C Di t Corporate governance is... • “Doing the right thing and doing things right.”  John Ralston 2
  3. 3. 5/13/2010 Corporate Governance directed by... • NSW registered clubs derive direction from the  • Club Constitution • Corporations Act 2001 • Registered Clubs Act 1976 • Liquor Act 2007 • Club Code of Practice Club Code of Practice  • ClubsNSW Best Practice Guidelines One Model: Carver's Policy Governance® model Four areas of governance policy: 1. The Strategic Plan 2. Board and CEO Relationship 3. CEO Limitations 4. Governance Process John Carver 3
  4. 4. 5/13/2010 One Model: Carver's Policy Governance® model Four areas of governance policy: Your reference documents: 1. The Strategic Plan • Club Code of Practice 2. Board and CEO Relationship • Best Practice Guidelines 3. CEO Limitations • Club Industry Guide 4. Governance Process Reference documents Your reference documents: • Club Code of Practice • Club Industry Guide • Best Practice Guidelines 4
  5. 5. 5/13/2010 1. The Strategic Plan • Policies: a) Mission Mission  b) Values c) Vision d) Objectives “All I’m saying is now is the • Best Practice Guideline for Board  time to devise the technology to Operation 15: Strategic Planning deflect an asteroid.” 2. Board and CEO Relationship • Policies: a) Delegation to the Delegation to the  CEO b) CEO Role c) Monitoring CEO  Performance  “So tell me again… how are you going d) CEO Compensation to keep the peas hot this year? year?” • Best Practice Guideline for  the Remuneration of Club  Executives 5
  6. 6. 5/13/2010 3. CEO Limitations • State what cannot be done • Club Code of Practice – Financial management & Reporting (#45) • The board will establish boundaries and limits regarding a) Capital investments b) Remuneration and benefits c) Protection of assets d) Tendering ) g e) Cost containment f) Efficient use of labour 4. Governance Processes • Policies: a) Governing structure Governing structure b) Board role description c) CEO’s role d) Code of Conduct e) Committee principles ) f) Cost of governance g • Best Practice Guideline for Board Operation 6
  7. 7. 5/13/2010 Corporate Governance Policy Contents 1. The Strategic Plan 3. CEO Limitations a) Our vision a) Capital investments b) Our mission b) Remuneration and benefits c) Our values ) c) Protection of assets ) d) Our objectives d) Tendering e) Cost containment f) Efficient use of labour 2. Board and CEO Relationship 4. Governance Process a) Delegation to the CEO a) Governing structure b) CEO Role b) Board role description c) Monitoring CEO Performance ) g c) CEO’s role ) d) CEO Compensation d) Code of Conduct e) Committee principles f) Cost of governance New information • What new information is available on Corporate Governance for clubs? “What policy?” 7
  8. 8. 5/13/2010 Independent Pricing And Regulatory Tribunal (IPART) • Structure the board to add value – effective composition, size and commitment  • IPART recommendations: – Remove constitutional restrictions – Appoint directors – Succession policy ASX Principles • Play a role in board succession planning • Nomination committee chaired by Chair Nomination committee chaired by Chair • Assess competencies required, review succession plans, evaluate  board’s performance and recommend candidates • Evaluate the range of skills, experience and expertise on the  board  • Develop a formal and transparent application and election  procedure to promote member understanding and confidence d t t b d t di d fid ASX Principles (2007) Recommendation 2.4 8
  9. 9. 5/13/2010 ASX Principles • Letter of appointment for directors • Term • Induction • Time commitment • Professional development • Power and duties • Independent advice • Special duties (if any) • Indemnity and insurance • Vacancies • Confidentiality • Committee work • Remuneration and expenses p • Disclosure • Fellow directors  ASX Principles (2007) Recommendation 1.1 Board Charter • Where does the Board Charter fit in? • The document summarises the role, responsibilities, policies and  processes of the Board and comments on the Board’s approach to  corporate governance.  • It can be supplemented by the Board Code of Conduct. 9
  10. 10. 5/13/2010 Example Board Charter - Qantas 1. Overview 12. Responsibilities of the CEO 2. The Constitution 13. Written Resolutions 3. Compliance with Laws 14. Code of Conduct and Ethics 4. Composition of the Board 15. Continuous Disclosure Policy 5. Duties and Responsibilities 16. Financial Results 6. Committees 17. Communications Policy 7. The Chairman 18. Annual Report 8. Independence of Directors  19. Corporate Governance Website 9. Access to Information and  20. Notice of Meeting Independent Advice d d d i 21. External Auditor 10. Appointment and Removal of  Directors 11. Director Protection Deeds Communicate • Publicise your Board Charter • Members and nominees (as part of pre‐nomination training) • Sub‐clubs, contractors and suppliers and organisations  benefitting from club sponsorship and donations • Financial institutions • Management and staff Management and staff • Encourage pride in the club and right fit 10