Responsibilities of Governing Body
Responsibilities of the governing body as a whole
The responsibilities of governing bodies include:
- Creating a clear, shared vision and maintaining a clear sense of focus on it
- Providing leadership for the organisation
- Making sure the organisation does not stray from its purpose
- Formulating policies and plans to bring about the organisation’s objectives
- Ensuring accountability to stakeholders
- Ensuring limited resources such as the finances are managed effectively
- Recruiting and supervising the most senior member of staff (if any)
- Ensuring an ethos of equality in all that the organisation does
- Ensuring that the organisation complies with all relevant policy and legal requirements
- Overseeing the assessment and management of risks to the organisation
- Recruiting and inducting new committee/ board members.
The specific responsibilities of company directors include:
- Running the financial affairs of the organisation in a manner that avoids fraudulent or reckless trading, which may lead to the directors being personally liable for company debts and may result in their likely disqualification from holding directorships for an extended period
- Exercising their powers in the best interests of the members and not in a manner that is oppressive to any member of the company, or in disregard of the interests of any member of the company
- Complying with the organisation’s memorandum and articles of association
- Complying with the Companies Act.
Annual compliance checklist for board of directors
- It is good practice for directors to complete and sign a checklist at their last meeting prior to the organisation’s annual general meeting (AGM). If certain duties are not ticked, remedial action must be taken!
- The company is solvent (that is, it can meet its debts as they fall due).
- Proper books of accounts are being maintained.
- Annual end of year accounts have been prepared and signed off.
- Audit of the end of year accounts has been prepared.
- Proper general meeting(s) of the company have been held.
- Minute book contains proper minutes of all meetings held.
- Register of directors is up-to-date.
- Register of members is up-to-date.
- Annual return (form B1) has been filed.
- All forms dealing with officer change (B10) have been filed.
- All other necessary documents have been filed.
- Current health and safety statement is in place.