1. What’s in a Legal Framework?
Associate Professor David Gilchrist
School of Business, University of Notre Dame Australia

2. University of Notre Dame Australia
Agenda
What is governance?
The Legislative Framework
Associations Captured
The Contract Culture
University of Notre Dame Australia

3. University of Notre Dame Australia
What is Governance?
Control of an organisation
Probity
Performance
Expectations
Culture
University of Notre Dame Australia

4. University of Notre Dame Australia
What is Governance?
The Commercial Model
Profit Leveller
Financial Interests
Blame Game
Enron, HIH…
Corporate Creep
University of Notre Dame Australia

5. Legislative Framework
Functional to Purpose
Agglomeration Perspective
Mission Centricity is Limited
Limited Protection for Directors and Senior Staff
Recruitment of Board Members
Limiting Confidence
Reduces Capacity for Risk Taking
University of Notre Dame Australia

6. Legislative Framework
Associations Incorporation Green Bill
Regulation Centric
No Business Rule Clause
Retains Agglomeration Approach
Retains Member Centric Approach
Deals with Demutualisation in a Limited Way
University of Notre Dame Australia

7. Legislative Framework
Corporations Law
Movement from state to federal law
Settled law
Answer to the demutualisation problem?
University of Notre Dame Australia

8. University of Notre Dame Australia
Accountant Capture
Financial Focus
Audit Focus
Service Provision Acquittals
Mission’ Place – flexibility in objectives for tax and flexibility purposes
Reduces capacity of organisations to be mission centric
Places finance in position of highest honour
University of Notre Dame Australia

9. University of Notre Dame Australia
Funder Capture
Missions Distortion
Under Capitalisation
Limited Strategic Horizon
Limited Philanthropic Culture – Stakeholder Capacity for Influence Depleted
Big is Better Mentality May Reduce Community Connectivity
University of Notre Dame Australia

10. University of Notre Dame Australia
Purchaser Capture
Planning & Prioritisation Funder Led
Marketing & Positioning Increasing Priority
Competitive Environment – all or nothing
Capacity for Funder and Provider to work together reduced
University of Notre Dame Australia

11. University of Notre Dame Australia
Outcomes?
Community Organisations not driven by the Community
One Size Fits All Legislation
Yet the entire community is affected
University of Notre Dame Australia

12. University of Notre Dame Australia
Way Forward
Useful and Effective Dialogue
Development of an Appropriate Governance Model
“De-Agglomeration”
Encouragement of Closer Liaison Between Regulator and Funding Agencies
Global Situation?
University of Notre Dame Australia