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.