Governance Charter – Board of Directors

Governance Charter ? Board of Directors

Adapted from: Kiel, G, & Nicholson, G. (2003); Boards that work ? a new guide for directors. Next scheduled review: February 2018

Australasian Sonographers Association Ltd PO Box 356 Dingley Village VIC 3172 P: 03 9552 0000 F: 03 9558 1399 E: ceo@ W:

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1. The role of the Board of Directors............................................................................4 2. Board structure..........................................................................................................5

2.1 Size.......................................................................................................................5 2.2 Office bearers, Board committees and representatives........................................5 2.3 Board skills ..........................................................................................................5 2.4 Selection and appointment of Directors...............................................................5

2.4.1 General Directors .........................................................................................5 2.4.2 External Directors ........................................................................................5 2.5 Rotation of Directors............................................................................................6 2.6 Vacation of office ................................................................................................6 3. The role of individual directors.................................................................................7 3.1 Directors' general roles........................................................................................7 3.2 Directors' Code of Conduct .................................................................................7 3.3 Expectations of directors in Board process..........................................................8 3.4 Confidentiality .....................................................................................................9 3.5 Conflict of interest and related party transactions ...............................................9 3.6 Emergency contact procedures ..........................................................................10 4. The role of the Company's Office bearers..............................................................11 4.1 President............................................................................................................11 4.1.1 Election of President ..................................................................................11 4.1.2 Specific duties of the President..................................................................11 4.1.3 Conflict of interest ......................................................................................12 4.1.4 Removal of President..................................................................................12 4.2 Vice President ...................................................................................................12 4.2.1 Election of Vice President .........................................................................12 4.2.2 Specific duties of the Vice President .........................................................13 4.2.3 Conflict of interest ......................................................................................13 4.2.4 Removal of Vice President .........................................................................13 5. The role of the CEO................................................................................................14 6. The role of the Company Secretary .........................................................................16 7. Board meetings .......................................................................................................17 7.1 Meeting processes ? general ..............................................................................17 7.1.1 Annual Board meeting calendar.................................................................17 7.1.2 Board papers ...............................................................................................18 7.1.3 Agenda ........................................................................................................18 7.1.4 Matters arising from the minutes ................................................................18 7.1.5 Register of Outstanding Items ....................................................................18 7.1.6 Minutes .......................................................................................................19 7.1.7 Head Office report ......................................................................................19 7.1.8 Major correspondence.................................................................................21 7.1.9 Reports from Board Committees ................................................................21 7.1.10 Activities requiring Board decision or noting...........................................21 7.1.11 Attendees...................................................................................................22 7.1.12 Quorum .....................................................................................................22 7.1.13 Conduct of meetings .................................................................................22 7.2 Meeting processes ? face-to-face......................................................................22 7.2.1 Venue ..........................................................................................................22 7.2.2 Board meeting agenda.................................................................................23 7.3 Meeting processes ? teleconference/other ........................................................23 7.3.1 Method ........................................................................................................23

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7.3.2 Board meeting agenda.................................................................................23 7.4 Resolutions by circular ......................................................................................24

7.4.1 Exceptions...................................................................................................24 7.5 Meeting evaluation.............................................................................................24 8. Board Committees ..................................................................................................25 8.1 Finance & Risk Committee................................................................................25 8.2 Sonographer Advancement Working Party .......................................................26 8.3 Governance Committee .....................................................................................26 9. Strategy formulation ...............................................................................................27 10. Service/advice/contacts.........................................................................................28 11. Monitoring ............................................................................................................29 11.1 Financial KRAs................................................................................................29 11.2 Non-financial KRAs ........................................................................................29 11.3 Compliance ......................................................................................................30 11.4 Risk management.............................................................................................30 11.5 CEO evaluation................................................................................................31 11.6 Delegation of authority ....................................................................................31

11.6.1 Decision making process ..........................................................................32 11.6.2 Specific delegations ..................................................................................32 11.6.3 Delegation of authority ? day-to-day........................................................32 11.6.4 Delegation of authority ? unforeseen circumstances ................................32 11.6.5 Actions for advice or noting .....................................................................33 11.6.6 Execution of documents............................................................................33 11.6.7 Delegated authority for cheque signing and funds transfers.....................34 12. Director protection .................................................................................................35 12.1 Information-seeking protocol...........................................................................35 12.2 Access to Board papers and legal advice.........................................................35 12.3 Insurance ..........................................................................................................35 13. Board evaluation ....................................................................................................36 14. Director remuneration and expenses......................................................................37 15. Director training and development ........................................................................39 16. Director induction ..................................................................................................40

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1. The role of the Board of Directors

The Corporations Act clearly establishes that the Board of Directors (`Board') is ultimately responsible for all matters relating to the running of the Australasian Sonographers Association Ltd (`ASA' or `Company').

The Board's role is to govern the Company rather than manage it. It is the purpose of the Chief Executive Officer (`CEO') to manage the Company in accordance with the direction of the Board.

In general, the Board is responsible for, and has the authority to determine, all matters relating to the policies, practices, management and operations of the ASA. It is required to do all things that may be necessary to be done in order to carry out the objectives of the Company. The Board has the final responsibility for the successful operations of the Company. Without intending to limit this general role of the Board, the specific or principal functions and responsibilities will include:

? acting as an interface between the ASA and members and other stakeholders;

? setting the goals of the ASA, including short-term, medium-term and long-term objectives;

? providing the overall strategic direction of the ASA; ? approving all policies governing the strategic direction of the ASA; ? appointing and approving the terms and conditions of the appointment

of the CEO; ? reviewing and providing feedback on the performance of the CEO,

including salary review; ? establishing and determining the powers and functions of the Board

committees and all other committees and working parties; ? approving major operating plans, including a periodic strategic plan; ? approving the annual budget and long-term budgets; ? monitoring the solvency of the organisation and ensuring expenditure

and revenue targets are in line with the approved budget; ? approving all expenditure outside of delegated authorities (see Section

11.6); ? approving all mergers and acquisitions, and property acquisitions and

disposals; ? reviewing the annual progress and performance of the ASA in meeting

the objectives of the Company, including reporting the outcome of such reviews.

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2. Board structure

2.1 Size

The Board of the ASA consists of up to ten members, as detailed in the Company's Constitution.

2.2 Office bearers, Board committees and representatives

In accordance with the Constitution and following confirmation at the Annual General Meeting of the composition of the incoming Board, the Board will convene to elect one director to the position of President and one director to the position of Vice President. Appointments will also be made to Board Committees as deemed appropriate, as well as ASA representatives on external committees as required.

2.3 Board skills

The principal focus of all Board members should be to represent sonographers and raise the profile of the sonography profession. Additional skills useful to the Company may include:

? legal, accounting, risk management and finance ? an understanding of the health system ? political lobbying and negotiating ? education delivery ? marketing, PR/media ? research ? conduct and interpretation ? ethics, standards and planning.

2.4 Selection and appointment of Directors

2.4.1 General Directors

General Directors are nominated and appointed as per the processes defined in the Constitution. Subject to the number of general directors allowed under the Constitution, a `casual' general director may be appointed by an ordinary resolution of the Company in general meeting. In the situation of a vacancy occurring between such AGMs, the Board may appoint a casual director. As stated in the Constitution, such a director will only hold office until the next AGM of the Company.

2.4.2 External Directors

The Governance Committee selects and recommends suitable persons to take on the role of External Director. Subject to the number of external

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directors allowed under the Constitution and at the Board's discretion, the appointment of an external director shall be approved by the Board. In the situation of a vacancy occurring between such elections, the Board may appoint a replacement. External directors will hold office for up to two years. Subject to the terms of the Constitution, external directors may be eligible for re-appointment.

2.5 Rotation of Directors

As detailed in the Company's Constitution, the length of appointment for a director is two years unless it is a casual appointment of a general director in which case the appointment ceases at the next Annual General Meeting. As per the Constitution, directors serve a maximum of eight years (four consecutive terms) excluding any terms served as an office bearer. All directors must resign at the end of each of their two year terms, but are eligible for re-election within these regulations.

2.6 Vacation of office

It is envisaged that directors shall remain on the Board until required to vacate the office, as detailed in the Constitution. The terms and conditions for directors are contained in their letter of appointment. If it is necessary to appoint a director for shorter periods of time to reflect necessary expertise or skills on the Board, it is anticipated that this situation will be clearly identified in the relevant director's letter of appointment.

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3. The role of individual directors

3.1 Directors' general roles

ASA directors have a fundamental fiduciary duty to the Company. In line with other companies, their duties relate to:

? Duty to act in good faith. ? Duty not to gain advantage by improper use of position. ? Duty not to misuse information. ? Duty to act with due care and diligence. ? Duty not to trade while insolvent.

In particular, s. 181(1) of the Corporations Act states that directors must act in the "best interests of the corporation". As such, action that favours some members or stakeholders above others will generally breach this duty, even if the disadvantaged are a minority.

3.2 Directors' Code of Conduct

In accordance with legal requirements and agreed ethical standards, ASA directors will:

? owe a fiduciary duty to the Company as a whole; ? use the powers of the office for a proper purpose; ? discharge their duties in good faith and honesty; ? act with the level of skill, care and diligence expected of a director of a

registered company; ? demonstrate commercial reasonableness in their decisions; ? act for the benefit of the Company; ? not make improper use of information gained through their position as a

director; ? not speak on behalf of the Company unless authorised in writing by the

President or CEO to do so; ? not take improper advantage of the position of director; ? not allow personal interests, or the interest of any associated person or

group, to conflict with the interests of the Company; ? make reasonable inquiries to ensure that the Company is operating

efficiently, effectively and legally towards achieving its goals; ? undertake diligent analysis of all proposals placed before the Board; ? not engage in conduct likely to bring discredit upon the Company;

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? make the President or CEO aware immediately of any circumstances which may impact on their ability to discharge their duties;

? give of their specific expertise generously to the Company; and ? comply with the spirit, as well as the letter, of the law and with the

principles of this charter.

3.3 Expectations of directors in Board process

A director shall, in good faith, behave in a manner that is consistent with generally accepted procedures for the conduct of meetings at all meetings of the Board. This will include, but not be limited to:

? ensuring they are well prepared by examining the agenda and Board papers prior to the meeting;

? acting in a business-like manner; ? acting in accordance with the Constitution; ? addressing issues in a confident and firm, yet friendly manner; ? using judgment, common sense and tact when discussing issues; ? minimising chatter, irrelevant remarks and disruption; ? ensuring that others are given a reasonable opportunity to put forward

their views (i.e. refraining from interruption or interjection when another director or person is speaking); ? providing feedback about Board meetings and Board processes willingly to assist with continuous improvement of business processes; and ? being particularly sensitive in interpreting any request or indication from the President that aims to ensure the orderly and good-spirited conduct of the meeting.

Directors are expected to be forthright in Board meetings and have a duty to question, request information, raise any issue, fully canvass all aspects of any issue confronting the Company and cast their vote on any resolution according to their own decision.

Outside the Boardroom, however, directors will support the letter and spirit of Board decisions in discussions with members, joint venture partners, suppliers, customers, staff and other stakeholders.

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