There has been significant attention paid
to governance in the last few years, as more and more Native Title Prescribed
Body Corporates are incorporated, and the tide has turned from welfare-based
Government funded Australian Indigenous organisations towards well-run Not for
Profit entities and social ventures seeking the philanthropic dollar.
This is only right because governance
underpins the development of modern Aboriginal corporations as these seek to
make a sustainable and resilient existence in the “mainstreaming” of their
services.
In my work where I advise, guide, help plan
and facilitate the business of Indigenous Boards, I have seen this attention on
governance leading to a trend to appoint “Independent Directors” to the Boards
of PBC’s and Australian Indigenous NFP’s. The question however is whether the
emphasis on governance equates to a need to appoint Independent Directors, and
what should be the criteria used to select them?
Firstly we should define the term. In
actual fact, all Non-Executive Directors (those Directors who are not employed
by their corporations in an operational or executive capacity) are
“independent”. That is, they are “independent” of management. Indeed the legal
fiduciary duty of all Directors, including Executive Directors, includes the
duty to act for the good of the company, and not for any group, family or
interest they represent,...
The Use of Independent Directors in an Indigenous Corporation (Part 1)
There has been significant attention paid
to governance in the last few years, as more and more Native Title Prescribed
Body Corporates are incorporated, and the tide has turned from welfare-based
Government funded Australian Indigenous organisations towards well-run Not for
Profit entities and social ventures seeking the philanthropic dollar.
This is only right because governance
underpins the development of modern Aboriginal corporations as these seek to
make a sustainable and resilient existence in the “mainstreaming” of their
services.
In my work where I advise, guide, help plan
and facilitate the business of Indigenous Boards, I have seen this attention on
governance leading to a trend to appoint “Independent Directors” to the Boards
of PBC’s and Australian Indigenous NFP’s. The question however is whether the
emphasis on governance equates to a need to appoint Independent Directors, and
what should be the criteria used to select them?
Firstly we should define the term. In
actual fact, all Non-Executive Directors (those Directors who are not employed
by their corporations in an operational or executive capacity) are
“independent”. That is, they are “independent” of management. Indeed the legal
fiduciary duty of all Directors, including Executive Directors, includes the
duty to act for the good of the company, and not for any group, family or
interest they represent,...
