To act within powers, and to comply with the company’s constitution.
To act (in good faith) to promote the success of the organisation.
To exercise independent judgment.
To exercise reasonable care, skill and diligence.
To avoid conflicts (or possible conflicts) of interest.
Not to accept benefits from third parties.
To declare any personal interests.
There are also general duties to act:
In the interests of creditors (especially in times of financial difficulty).
In the interests of its employees.
With regard to the long-term consequence of any decision in mind.
With regard to relationships with suppliers, customers and generally with its local community and the environment.
To maintain reputation.
To act fairly as between members of the organisation.
There are also specific duties including:
The obligation to file information at Companies House.
Not to trade whilst insolvent.
To operate in accordance with the relevant Health and Safety regulations.
There are several statutory obligations that registered companies must comply with or they will face financial penalties.
A director’s practical guide to asking the right questions at the right time.
Chairs have a key role in ensuring the charity complies with the law which can feel daunting. The law is complex, wide-ranging, and changeable. Legal advice is typically expensive, may slow things down and can feel like a block to action. But a breach of the law can have serious consequences for the charity, and sometimes for the trustees personally. This briefing helps you understand the issues and find a workable approach.
The guide will prove relevant to CEOs and their chairs but is also recommended reading for all those involved in the governance of third sector organisations. Published: November 2013.
In response to evidence suggesting an increase in concern regarding governance-related issues in the voluntary sector, the ACEVO Governance Commission set out to produce a practically-focused piece of work, focused on supporting voluntary organisations to understand and address the issues and challenges that can affect their governance. Guided by the concerns raised by respondents to the Commission’s consultation exercises, the report focuses on three main areas: appraisal and accountability; understanding roles and responsibilities; and board management. Published: 2013.
Helps Chairs explore and strengthen the relationship they have with their CEO. Published: 2016.
A Chair’s Compass – a guide for Chairs of charities and non-profit organisations focuses entirely on the Chair’s perspective and the particular challenges and opportunities of the role. Whether you are a new Chair, or highly experienced, this guide provokes both thought and action.