Board composition
Your directors might all be very different people with different knowledge and skills. But they should work towards the corporation’s goal and share a passion for achieving your vision.
Setting your board composition
Under the CATSI Act, your board will be made up of at least 3 directors and less than 12, unless you have an exemption.
Most of your directors must be Aboriginal or Torres Strait Islander people. This is called the Indigeneity requirement.
Learn more about the Indigeneity requirement in our position statement
Your rule book can set:
- a higher ratio of Aboriginal and Torres Strait Islander people
- certain rules about appointment, term and qualifications of directors.
Board skills and knowledge
A corporation’s board should reflect the corporation’s purpose and goals.
A board may need different skills, depending on what the corporation’s role is. For example, a health services corporation may need people with medical experience on the board.
As you’re making or changing a board, these are some questions to ask yourself:
- What are the skills and attributes that this board needs?
- What are the skills and attributes that this board has?
- What are the gaps and how can I fill them?
Directors with financial literacy
Financial literacy is vital. Every board should have at least one director with an understanding of complex financial information.
All other directors need a basic level of financial literacy.
ORIC offers free financial training for directors of Indigenous corporations.
Independent directors
One way to bring different skills to the board is to have an independent director.
They might have industry knowledge, such as retail. Or they could have a special qualification, such as being a doctor or lawyer.
Learn more about choosing and appointing independent directors.
Board advisory bodies
Directors walk in 2 worlds. There might be tension between:
- acting in the best interests of the corporation
- acting in the interests of the people they’re culturally representing, especially in native title bodies.
An advisory body can give advice while directors manage the governance and finances.
For example, you might have an advisory body of Elders, Traditional Owners or of young people.
Skills on boards
Learn more about the skills every board needs in a conversation between experts.