As a member of the board, you have duties and responsibilities that come with your role to government agencies or under legislation.
Governance standards requires that an entity take reasonable steps to make sure that the members of their governing body know and understand their legal duties and carry out their duties. These duties generally require you to be careful and conscientious in your role and to act with common sense and integrity.
The duties are:
- To act with reasonable care and diligence. You must exercise your powers and duties with the care and diligence that a reasonable person would if they were in your place.
- To act in good faith in the best interests of the organisation and for a proper purpose. When acting as a board member you must make decisions that are in the best interest of the organisation and to further its purpose.
- Not to improperly use information or position. Any special knowledge that you gain as a board member must only be used for the benefit of the organisation and never to further personal or other interests. Similarly, you must not use your position to improperly gain an advantage for yourself or someone else, or cause detriment to the organisation.
- To disclose conflicts of interest. If your duty to act in the best interests of the organisation is in conflict with (or may conflict with) your personal interests, you must disclose this responsibly.
- To ensure that financial affairs are managed responsibly. Ensure that there are systems and processes in place that ensure that the organisations resources are being effectively put towards the organisations purpose and are protected from misuse.
- Not to allow the organisation to operate while insolvent. You must ensure that the organisation can pay its debts when they are due or will become due and that it does not continue to operate if it cannot pay its debts.
Knowing and carrying out your duties as a board member helps PNA to carry out its purpose and protects its resources against misuse.