Governance, Organisation

MAINTAINING BEST PRACTICE REQUIRES REGULAR REVIEW


Over the past 6 years Vicsport has worked with in excess of 30 State Sporting Associations to improve their governance practices and policies through the Good Governance program. While Vicsport is committed to helping members improve their governance it is also committed to maintaining high standards in its own governance and where possible demonstrate best practice. This has seen the Vicsport Board regularly review governance practices and policies and recently resulted in a change to Vicsport’s Rules which were approved by members at a Special General Meeting on 7 October 2014.

Prior to the Special General Meeting Vicsport’s Rules stated that the Board will consist of a minimum of six and a maximum of eight elected Directors, and up to two appointed Directors. Currently the Vicsport Board consists of eight elected Directors and one appointed Director. Each year four Directors positions were up for election for two year terms.

Over the last 4 years interest in Vicsport’s Director positions has increased significantly. This interest is extremely healthy for Vicsport however the Board had some concerns regarding
half the elected positions being up for election each year and two year terms. The Board is conscious of the need for stability and protection of corporate knowledge while at the same time
welcoming competition for elected positions. The Australian Institute of Company Directors (AICD) are of the view that short board terms can impact on board continuity and long term strategic thinking1. Directors have had several discussions at Board meetings regarding terms of Directors and risk management strategies regarding retention of corporate knowledge.

It was felt by the Board and management alike that by increasing the terms of each elected director from two years to three years it would have a twofold effect. Firstly, the Board would limit the risk of instability and knowledge loss and secondly, it would allow Directors greater opportunity to make a significant contribution to Vicsport.

THE AICD ALSO RECOMMENDS THAT BOARD TERMS SHOULD BE “APPROPRIATELY STAGGERED, SO THAT THERE IS A CONTINUITY OF APPROPRIATE KNOWLEDGE, SKILLS AND EXPERIENCE ON THE BOARD, AS WELL AS CONTINUITY ON ORGANISATION AND BOARD-SPECIFIC ISSUES”¹

At the Special General Meeting members were asked to support moving to a maximum of 3 director positions being available each year and three year terms for all elected Directors. The aim was to provide additional stability to Vicsport in the coming years.

In accordance with Vicsport Rules a special resolution was put to the members at a Special General Meeting on 7 October 2014.
The change was approved by the members and will come into effect at the 2014 AGM.


¹Australian Institute of Company Directors (2013) GOOD GOVERNANCE PRINCIPLES AND GUIDANCE for Not-for-Profit Organisations [on-line]
Available at: http://www.companydirectors.com.au/~/media/B42BD5B5CA1445F582BB96ADAC752325.ashx Accessed October 2014

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