Nick Miller and Simon Bowden talk about understanding the new
regulator (the ACNC), its power and responsibilities.
So what do you think organisations that are currently preparing
for this regime notwithstanding the lack of detail about it should
Well two main things Simon. One of those is to think about what
the governance arrangements the organisation presently comprise.
That might be the constitution or the rules or the trust deed. It
might also be a board charter. There might be some obligations in
the governance space that are open to funders or possibly to the
ATO. So identify what those are.
Secondly, there's going to be a major change in the
perspective that governance will have. At the present time both
not-for-profit and for profit organisations, the responsible
individuals or directors owe duties to the organisation as a whole,
typically regarded as the shareholders en masse. However for
not-for-profits and charities from 1 July of this year, it looks as
if that's going to change and there's going to be a broader
perspective required. So, those responsible individuals will need
to have regard to a broader range of stakeholders. Not just the
members but also to the government, to other funders, to donors, to
volunteers - and that's a really big shift in perspective that
those responsible individuals or directors will really need to take
some time to digest and understand what that means for their
organisation and how their governance needs to be structured to
take account of those different perspectives that they need to have
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We discuss whether certain clauses commonly found in ordinary commercial contracts could be considered to be penalties.
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