2. The Constitution of an Organisation

Introduction

This Learner Manual addresses the Unit of Competency BSBFNG405 Review and apply the constitution in an Aboriginal and Torres Strait Islander organisation. 

The Learning Objectives are:

·       Describe the purpose of the constitution of an organisation.

·       Summarise the legal requirements for a constitution of an organisation.

·       Summarise the process of changing a Constitution

·       Distinguish between Indigenous governance and organisational governance.

 

The Constitution of an Organisation

A Constitution is a legal set of rules by which organisations operate. Board members exercise powers in accordance with the corporation’s Constitution The Constitution is sometimes referred to as the Rule Book. 

An organisation needs to make decisions on the rules that will govern the running of the organisation. This way, it is clear to members and to any individuals and other organisations that it does business with, exactly what the organisation does, who owns its assets and who is responsible for making legal decisions on behalf of the organisation. 

When these rules are determined and written down the document is known as the constitution of the organisation. The constitution should be readily available to members and other interested parties. 

It is important that members and office bearers are familiar with the constitution or ‘the rules’ of an incorporated organisation. 

Every new member should be provided with access to (or their own copy) of the constitution and the organisation needs to ensure that new members understand the constitution and that being a member means abiding by the rules it contains.