Committees of management make important decisions and determine the direction of the registered organisation.
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Meetings are an essential part of running a registered organisation. They are the place for decision-making, sharing information, asking questions and solving problems.
Committees of management make important decisions and determine the direction of the registered organisation. Officers on the committee (COM) are the leaders of the organisation. They manage finances, influence strategic direction, and oversee other governance activities. Consequently, they should be:
- surrounded by and encourage good governance processes to ensure these functions are accountable, transparent, and free from conflict, and
- modelling good governance to the organisation.
Typical functions of a committee of management
- Making decisions about the organisation’s spending
- Approving budgets
- Approving loans, grants and donations
- Preparing and monitoring the organisation’s policies, strategies and plans
- Enforcing the rules of the organisation
- Drafting and voting on changes to the rules or policies
- Executing strategies in relation to key issues affecting the organisation.
- Financial management duties
Check your organisation’s rules for the full list of functions of your committee.
Committee of management membership
Committees of management usually include senior leadership positions such as the secretary and president, and generally a small number of other officers. Membership of the committee is outlined in your organisation’s rules. Ensuring diversity in committees creates innovation, grows your talent pool and embraces different perspectives.
In some organisations’ rules, the committee may be called something else, such as 'the board' or 'the executive'.
Good governance essential to a strong committee of management
A committee of management is a collection of individuals who work together to make decisions in the best interests of members. They have diverse opinions, skills, experience, interests and are often volunteers. Many of them will be new to the role and with elections will be rotating frequently.
This is why officer induction and good governance is essential – to help the organisation keep corporate knowledge, stay on track with long term projects, minimise risks and avoid inefficiencies.
All members of a committee of management in every registered organisation:
- have financial management duties
- make financial disclosures, see chapter 9: Disclosing information for ORP statements
- have officer duties under the Fair Work (Registered Organisations) Act 2009 (the RO Act), see chapter 6: Officers’ duties
- should be inducted including financial management training within six months of taking office, see chapter 3: Officer induction.
Useful tip: Disagreement can lead to better decision making
Encouraging your officers to voice their concerns or provide alternate views can lead the Committee of Management to reach stronger solutions for the organisation.
Good governance tips for committees of management
There is no group in a registered organisation with more influence on governance and culture than the Committee of Management. Therefore, it is crucial that the committee is well-run and effective. Below are some of our best practice tips for committees of management. These ideas might help you improve your processes or help you think of better ideas that work for your organisation.