Any member of any organisation’s governing body – be it boards, committees, councils etc – has a Fiduciary Duty imposed upon them with which they must always comply.
But many people either don’t understand what this means for them, or are unsure how to comply with it.
In the simplest terms, Fiduciary Duty is the duty to act in the best interest of your organisation, above and beyond your own or anyone else’s interests. Any decision or action you take on behalf of the organisation has to be for the good of the organisation, and you must not use your position to benefit yourself, or anyone else.
The fiduciary relationship between any governor and their organisation is a general law notion, and it dictates that you must always and unwaveringly act in the best interests of the organisation, acting honestly, fairly, loyally, in good faith, and with integrity at all times. Not to do so would be to create a conflict of interest, which it is also your duty to avoid.
Some small community groups think that the legal requirements imposed on larger organisations are not relevant to them, but that is not the case. Regardless of how big or small your organisation may be, the legal requirements are still the same.
So keep a check on how your organisation is operating, and make sure that everyone understands their Fiduciary Duty, and what they need to do (and not do) to comply with it.
You can download this Blog Post as a tip sheet by clicking here:Tip Sheet_ Fiduciary Duty 25 Jul 2018