Read Your Club Constitution
Article by Warren Tapp
All Directors or Committee members of Clubs should read their Club Constitution, preferably as part of their induction on to the Board, if not then anytime.
If you are a company limited by guarantee (a not-for-profit company) you will have a Constitution and be regulated by ASIC. If you are an Incorporated Association, you will have a set of Model Rules for your Association and be regulated by your State Government agency such as Consumer Affairs or Office of Fair Trading.
Either way, this document is the set of rules that apply to how your Club entity itself operates. They are not the day-to-day operational rules the Club uses.
It will include such things as the following:
- Objects of the Club
- How Directors are elected or removed
- Power of the Directors
- Members meetings and AGM
- Financial and other regulatory reporting
- Auditing of your books
- Members rights if not happy
- Majority votes required
- Changing the Constitution
- Winding up of the Club
It is important you read and understand this document (ask your Club Secretary or CEO how to get a copy or, better still, have it on your Club website).
A number of Clubs have ended up in court cases because they did not follow the Constitution, so it is important each Director reads and understands it. Only the members can agree to change it anytime, not the Club Board.
Who Needs Club Governance Training?
In our opinion every club and Association across Australia need Club Governance Training.
Governing a Club, Charity or any Not-for-profit is a big responsibility, and it cannot be done by well-meaning volunteers who do not understand their role.
Club Governance Training will;
- Board Members will know their responsibilities.
- You’ll have more productive Board Meetings.
- Help improve your Club’s growth and sustainability.
- Your Club will be more legally compliant.
Club Governance has developed an online training program for all Board and Committee members to ensure they know how to do their job.
It is available in 15 modules of about 15 minutes each and covers all the necessary knowledge they must have, based on our 30+ years of assisting organisations like yours around Australia.