Does your organisation have a Committee of Management Charter? A lot of organisations don’t have Charter but it is a very important document as it provides a framework for the roles, responsibilities and accountabilities of the committee of management. This framework is also intended to provide a common understanding around the conduct of the committee of management members and potential committee of management members.
You might think you don’t need a Charter and that everyone understands what they have to do but that isn’t always true. In particular, standards of behaviour can be misinterpreted and it’s important to be clear about what is expected right from the start. Can you imagine what might have happened if Little John decided that Maid Marian should be banned because she wore a gown? Or that Friar Tuck should not be allowed to fight because he was a clergyman? Clarity on roles, responsibilities and standards is vital to the success of any Committee of Management.
If you don’t have a Charter you should write one. These points will help you draft one.
- The purpose of the Charter: This should be a brief statement simply outlining that the Charter details the roles, responsibilities and how the committee of management operates.
- The purpose of the Committee of Management. Outline the responsibilities of the committee of management which may include, developing policies, establishing the strategic direction, overseeing legal compliance, approving and monitoring financial reporting and performance, appointing new committee of management members, identifying and managing risks, appointing and reviewing the performance of the CEO.
- Composition of the Committee of Management: This should detail the maximum and minimum numbers of member for the committee of management as well as the range and mix of skills that collectively the committee of management should comprise of.
- Roles and responsibilities of the Committee of Management: Detail the roles and responsibilities of the President, Vice President, Treasurer or Secretary as well as any sub committees.
- Committee of Management Meetings: Outline how often the committee of management meetings will occur, that minutes will be prepared and circulated prior to the meeting and how decisions are made during the meetings.
- Committee of Management Performance: This should outline how new committee of management members are inducted, details of training for committee of management members as well as how you will evaluate the performance of the committee of management.
- Appointment and removal from the committee of management and reimbursement of costs: This should outline how appointments are made to the committee of management, terms of appointments, the circumstances where they can be removed as well as the reimbursement of costs. Often with not for profits the reimbursement of costs may relate to covering reasonable expenses that have been approved by the committee of management that are within an approved budget.
Depending on the size, type or legal responsibilities of your organisation the Charter can have many other elements. When a new committee of management member is appointed they should sign it to acknowledge that agree with it as existing committee of management members should do any time it has been reviewed and updated.
It is also important that the policies, codes of conduct, delegation authorities and any other organisational guidelines are aligned to the Committee of Management Charter and that a review takes place on a regular basis and update as needed.
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