Corporate governance principles

ORIC provides a set of corporate governance principles designed to ensure an Aboriginal and Torres Strait Islander corporation has corporate governance that supports performance and compliance, and is culturally legitimate. 

Effective corporate governance enables a corporation to achieve its purpose and to be compliant with all the rules and laws. Aboriginal and Torres Strait Islander corporations must also consider where and how their Indigenous culture and traditions inform their corporate governance.  

Some of the principles apply broadly to a corporation, while others focus on the role and performance of the board. The board is responsible for making sure the corporation is governed effectively and legitimately, but everyone involved in the corporation plays a part. 

How to use these principles 

These principles will help you understand what effective corporate governance looks like and how you can achieve it. Use it: 

• as a guide when you have questions about corporate governance
• when you induct new board members and managers, and  
• to evaluate a board’s performance.  

Summary of the principles

• The corporation determines to what extent Indigenous culture is embedded and reflected in its corporate governance.
• The corporation serves its purpose and honours its legacy.
• The governance structure, roles and relationships are clear. There is a separation of powers and ultimate control rests with the membership.
• The board runs effectively.
• The board leads the corporation, overseeing organisational culture, strategy, performance and compliance.
• The board oversees strategy, risk management including financial security and controls, and compliance and performance.
• The board is accountable to members and stakeholders, demonstrating transparency and respect.
• Governance is an ongoing and evolving practice.