The Government has released Consultation Paper – Review of Not-for-profit Governance Arrangements for comment.
The outcomes of the governance review will help form the governance requirements for registered entities in the Australian Charities and Not-for-profits Commission legislation, starting from 1 July 2012.
The proposed governance principles are grouped into the following areas:
• duties and minimum standards of responsible individuals, including rules for proper organisational management and running of the entity;
• disclosure requirements and managing conflicts of interest;
• risk management procedures, including external reviews and auditing requirements;
• the coverage of the minimum requirements of governing rules; and
• relationships with members (where applicable).
The ACNC will be regulating many structures of entities, and a single set of core principles will make it easier for NFP entities to comply with the requirements.
The new governance arrangements will apply from 1 July 2012, the same time the ACNC commences operations. Appropriate arrangements will be put in place to allow a smooth transition for existing entities, including those currently regulated by ASIC.