Corporate governance

Corporations need strong governance to be successful. This means directors run the corporation effectively with the help of management and staff. We provide information and resources so people directors can set up and manage good governance practices.

Definition

Corporate governance is a term for how corporations are run and managed.

Corporations will be in a good position to grow and succeed if they:

• have clear objectives and functions
• operate in ways that respond to and account for their unique circumstances
• have members who understand the corporation’s rules.

Indigenous governance includes a role for Aboriginal and Torres Strait Islander cultures in how this is done.

Responsibility

Most corporations under the CATSI Act have limited liability. This means members don’t usually have to contribute to the debts of the corporation if it fails. 

The board of directors makes decisions about a corporation’s governance. The board performs its duties with the support of management and staff and in line with:

• members’ wishes
• the rule book 
• the law
• agreements with stakeholders (when necessary).

Directors can be held liable if they have not fulfilled their duties as an officer. 

Setting up corporate governance 

The people who lead and run organisations are responsible for governance. For Aboriginal and Torres Strait Islander corporations, that’s the board as a group.

Get tips for setting up good corporate governance.

Corporation purpose

A corporation’s purpose is the reason it exists and rules change depending on whether it’s for-profit, not-for-profit, a charity, or a Registered Native Title Body Corporate.

Find out more about the variety of corporation purposes.

Corporation size

Corporations are classified as small, medium and large. This depends on their income, assets and number of staff.

Governance responsibilities change with the size of the corporation. 

Governance health checks

We do regular examinations to check on the governance health of corporations.

If something isn’t going well, we can support the corporation to improve. The Registrar can step in if the rules or laws are being broken.

You can check the health of your corporation and identify issues early with governance health checks.

Laws, rules and obligations

Corporations must work in line with laws and regulations. These come in many forms, including Acts of Parliament, regulations, contracts and funding agreements.

Aboriginal and Torres Strait Islander corporations must comply with the CATSI Act and some other laws, rules and obligations.