Who Can Be A Board Member?
- Dwayne Wescombe
- Dec 5, 2018
- 2 min read
The criteria for who is eligible/ineligible to be a Board Member varies dramatically across Australian States and Territories.
The methodology for conveying this information also varies from State to State – some information being included in their respective Model Rules, other in their respective Associations Acts.
A summary of criteria is included in this table:
Different States and Territories also define what constitutes insolvency, incapacity and criminal record differently – these definitions are included in each States respective Model Rules and Associations Act (see links below).
To highlight some interesting observations:
Every State has different criteria
Two states lack a definition for minimum age
Two States do not disqualify you if you are dead
Two States disqualify you if you live in a different State.
Even though a State doesn’t prohibit something doesn’t mean it must be allowed. For example, despite it being legal, it may not be beneficial for a Western Australian Board to appoint a 6 year old Board Member. An organisation can set additional Board selection criteria in its constitution and/or Board Policies & Procedures as long as they do not contravene the various Anti-Discrimination Acts.
Organisations need to be diligent when appointing Board Members to ensure they with their applicable Associations Act, Constitutions and Board Policies & Procedures.
How much simpler would it be if all Australian States could agree and come up with a single Associations Act and a single Model Rules.
Conflict of Interest
Another area that may disqualify someone from being on a Board is where a significant Conflict Of Interest exists. Minor Conflicts of Interest can be managed by clearly documented and agreed to Board Policies and Procedures.
Given Conflict of Interest is not usually covered by Associations Acts it is important that this area is covered well in Board Policies & Procedures and/or Organisational Constitutions.
Conflict of Interest is something I will cover in a future blog. It's a very broad topic in it's own right.
As always I’d love to hear your feedback.
If this is an area in which TakeControl Solutions may be of assistance to your organisation please do not hesitate to contact me.
Dwayne Wescombe
Managing Director of TakeControl Solutions
List of Australian State Associations Acts
List of Australian States Model Rules
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