Framework— understanding the boundaries
What is the enabling governance legislation for an organisation?
Do the powers derive from the Corporations Act 2001 (Commonwealth)? This is the enabling legislation for:
- proprietary companies
- public companies (both listed and unlisted)
- companies limited by guarantee (many not-for-profit organisations are incorporated in this manner)
- companies limited by shares.
Or do the powers derive from other legislation?
For example, for government agencies it could be State Government legislation or the Local Government Act, the Commonwealth Authorities and Companies Act 1997 or Public Governance, Performance and Accountability Act 2013. A statutory authority is enabled under its own Act.
Not-for-profit (NFP) organisations are now subject to the Australian Charities and Not-for-profits Commission Act 2012 which provides the governance framework with which charities are required to operate.