Governance in the school context can be a peculiar beast. Boards are usually populated with well intentioned parents and volunteers, the political landscape of schools can involve the school, a school system and/or a religious affiliate and ordinary commercial duties and obligations must be balanced with the overarching duty to act in the best interests of students.

Good governance in schools is critical to navigate these peculiarities.

Members of school Boards and Councils are bound by the same duties as members of "ordinary" Boards and Councils. These include legislative requirements under the Corporations Act 2001 (Cth) and fiduciary duties. Further, the Centro decision highlighted the requirement for members of Boards and Councils to maintain familiarity with the financial status of the school, by regular review and comprehension of financial statements.

It is important that schools take governance seriously as there can be significant consequences following poor governance, this includes, decreased support from parents, stakeholders and donors, media coverage, reputational and brand damage and potentially legal claims from students, parents or employees.

School Boards and Councils are frequently populated by parents, members of the community and other volunteers who may hold no relevant qualifications nor have any commercial experience. Schools, practically, do not have the luxury to exclude such persons from their Boards or Councils. Instead schools should consider strategies in relation to recruitment, induction, education and succession for the members of their Boards and Councils.

There are some fundamental questions which the members of a school Board or Council should consider, which will clarify their powers, confirm their limitations and avoid any confusion on the delineation between the governance and management of the school.

These questions may include:

  • What is source of the Board or Council's powers?
  • Are there any matters that the Board or Council does not have the powers to decide upon?
  • Does the Board or Council have the power to terminate the Principal's contract of employment, or the employment of other persons within the school?
  • What is the process used by the Board or Council to evaluate its own performance?

Tips and Tricks

There are numerous examples where school Boards or Councils have had their decisions publically challenged. Such conduct is detrimental to the school, the school community and the individuals involved.

Members of Boards and Councils should:

  • act in the best interests of the school.
  • maintain confidentiality of all discussions and decisions.
  • act with integrity, honesty, diligence and accountability.
  • disclose all actual, potential and perceived conflicts of interest.
  • undertake formal professional learning, such at the AICD Company Directors Course.

Boards and Councils have the capacity to greatly affect the success, or otherwise, of their school. The direction and oversight provided by the Board and Council, and the adherence to the fundamentals of good governance, are the foundations of a successful and sustainable school.

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