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The written constitution provides only some of the rules that govern an organisation. In addition there are likely to be regulatory requirements (for example, if the organisation is registered as a company, or as a charity). These two factors really need to be considered together, which is why I offer....

CONSTITUTIONAL HEALTH CHECKS

Many organisations are a little hazy about constitutional and regulatory issues, which as a result can become a source of anxiety. Are we complying properly with our constitution? Do we know who our members are – and do they know who they are? Why does it matter? (It does!) Are we keeping all the records the law requires us to keep? Are there other rules we ought to be aware of?

I can undertake a Constitutional Health Check to remove this anxiety by reviewing key constitutional issues within your organisation and producing a report with recommendations. Areas covered include:

- the governing document (constitution, memorandum & articles, etc)

- membership and membership records

- appointment of members of the governing body (management committee, trustees, directors etc)

- AGM cycle

- record-keeping

- returns (Charity Commission, Companies House, etc, as appropriate)

Standard charge: £350 (may be reduced if I find little to report on)

 
CONSTITUTIONS (GOVERNING DOCUMENTS)

An organisation's governing document is where its legal structure is enshrined and explained. It provides the basic rule book for the governance of the organisation. While the generic term "constitution" is often used to describe an organisation's rulebook, the formal title given to the governing document will vary depending on the legal status of the organisation, thus:

Type of organisation

Name commonly given to governing document

Unincorporated association

Constitution

Simple trust

Trust Deed

Company (limited by guarantee or by shares)

Memorandum & Articles of Association ("mem & arts")

Industrial & Provident Society (community benefit society or co-operative)

Registered Rules

The governing document will include essential provisions relating to the choice of legal status (e.g. the requirements of company law, plus those of charity law if applicable), combined with the key characteristics that the group wishes the organisation to have.

These constitutional characteristics will be established by the founder members, and should be reviewed regularly and revised or improved as the organisation develops and matures. Occasionally a wholesale review and re-structuring is called for.

Drafting an effective governing document requires an in-depth knowledge of the legal framework (company law, charity law, trust law etc) as well as an understanding of the values and practices of the not-for-profit and social enterprise sectors. Consequently neither commercial solicitors not generalist advisers will usually be able to make the best job of creating a legal structure: they may have one half of the necessary expertise, but they will rarely have both.

I wrote my first governing document (a set of mem & arts) for a community printing project when I was 18 years old. This involved sitting in the local library and reading the Companies Acts from cover to cover. My entire working life since has been spent working in or for the voluntary, community and social enterprise sectors, developing ever more specialised knowledge of the legal frameworks in which they operate while retaining close contact with organisations in the field.

One thing should be remembered, though: no matter how elegant and thorough a constitution may be, it can never absolutely guarantee the smooth running of an organisation. If there is a breakdown of goodwill between members or if pressure is created by financial difficulties, the constitution can help to ensure that adequate processes are in place to deal with such difficulties - but it can't necessarily solve them.

 

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© Charlie Cattell 2006