Management Committee/Board
Competencies of the management committee/board
Responsibilities of the management committee/board
Rights of the management committee/board
Responsibilities of sub-committees
Competencies of management committee/board
It is important that those elected to the management committee/board are the right people with the right skills. To ensure that this is achieved, the following attributes should be sought after, including:
- Ability to think strategically
- Good oral and presentation skills
- Financial competency
- Analytical and critical reasoning skills
- High level of personal integrity
- Broad business experience stakeholder connections and influence
- Willingness to commit time and effort
Responsibilities and rights of the management committee/board
It is important that those elected to the management committtee/board understand their responsibilities and rights as elected members. These responsibilities include legal, strategic, financial, risk management and moral responsibilities.
Legal responsibilities
The management committee/board members must ensure that the Club meets all legal requirements.
Management committee/board members share a common liability and they could be sued individually or collectively in the event of a determination that the board failed to properly exercise its duty of care or knowingly acted in breach of the law.
It is therefore of paramount importance that the Club and its management committee/board become incorporated or indulge in suitable insurance cover to ensure limited liability and the protection of the board's personal assets.
Board members of companies limited by guarantee or that are incorporated have the following responsibilities:
- Exercising a reasonable level of care and diligence
- Not making improper use of information acquired through their directorship of the Club, to gain, directly or indirectly, an advantage for themselves, for someone else, or to cause detriment to the Club
- Comply with all relevant organisation
- Ensuring the proper keeping of records, registers, accounts, reports and lodgment of documents
- Ensuring that the organisation only exercises those powers and functions permitted to it under its constitutions and rules
- Providing assurance that the published accounts give a fair and true view of the organisation's financial position
- Providing assurance that the organisation is able to pay its debt (is solvent)
All management committee/board members must declare any conflict of interest relating to meeting their personal responsibilities to the management committee/board. The management committee/board should have a conflict of interest policy that outlines the processes to be followed when a conflict of interest is identified. The committee/board member is required to leave the room and play no further part in the discussion and have no vote on the issue relating to the conflict of interest.
Conflicts of interest may be “Pecuniary”, that is involve the board member in financial dealings with the board or “non pecuniary”, where by there is a family member or personal involvement in the matter under discussion.
Strategic responsibilities
The committee/board's premiere duty is to ensure the Club has firmly established goals. They must create the Clubs strategic direction outlined in the strategic plan.
The management committee/board should develop strategic direction and a strategic plan in partnership with the Club's key stakeholders and employees.
The strategic plan must be ultimately owned by the management committee/board.
The operational plans designed to achieve the mapped-out strategies is the responsibility of the individual Club members/employees and NOT the management committee/board. The management committee/board should play no part in developing operational plans beyond setting the strategic direction. The one exception to the general rule is the organisations budget which the board must review, approve and monitor.
If the Club is small and has few members, then the management committee/board will probably become involved in the operational side as well. However, it is important that their responsibilities as a management committee/board member are not compromised.
Financial responsibilities
Financial governance sets out the financial policies for the treasurer or paid employee(s) to carry out on a day-to -day basis and is different from financial management.
The committee/boards financial governance policy should address the following:
- Budgeting and financial planning
- Strategic Investments
- Employee remunerations, benefits and expenditures
- Protection of assets
Moral responsibilities
The management committee/board member's moral responsibilities include:
- Keep up-to-date with concerns and expectations of stakeholders
- Keep all members of the Club up-to-date on current and future direction of the Club
- Ensure the safety and wellbeing of all members is paramount
Risk management responsibility
Risk management is the means by which the management committee/board and employees ensure that the risks faced, do not result in significant loss or harm to the Club. Risks to the Club need to be identified, steps put in place to counter risks and ensure these are updated regularly as part of the risk management plan.
Rights of the management committee/board
- Receive or access information from management staff when needed
- Question management when enquiry required
- Access professional advice
- Have their views heard by fellow management committee/board members
Responsibilities of sub-committees
Sub-committees are usually appointed by the management committee/board to do detailed investigations into specific topics. There are various types:
Standing committees: have permanent responsibilities. Examples include finance, fundraising, public relations, volunteer coordination, uniforms, selection panels, medical, coaching.
Short-term sub-committees: have the ability to make decisions over a pre-determined period, although they must report to the management committee. A short-term sub-committee could be appointed to organise fundraising for a special event.
Task groups: have no authority to make decisions. They gather and assess information in regard to a specific issue over a relatively short timeframe, then report recommendations back to the main committee. This task group might, for example, consider the advantages and disadvantages of building a new Clubhouse or expanding the playing fields.
Acknowledgements
Reproduced with permission from the Australian Sports Commission.
