The management committee

Under the Act, the management committee is the group of persons that has the authority to exercise the powers and functions of the association and to manage its affairs. This is an important provision because people who are identified as committee members have special responsibilities under the Act, both as individuals, and as part of the group. Usually, associations refer to this group as the committee, but sometimes it is referred to by other names, such as 'the council' or 'the board'.

Some large incorporated associations have both a board of governors and a management committee. In this case, a distinction may be made between the role of the board responsible for governance, and the day-to-day management of the association that is carried out by the management committee. In general, governance refers to policy-making and rule making, and management is concerned with the implementation of policy and all the organisational and administrative activities that are carried out in order to achieve the objects of the association. In this two tier system the management committee derives its authority to function from the board of governors. A board of governors focuses on the overall strategic direction of the association, compliance with the legislation and policy in general. Governors are also concerned with the overall financial management, providing resources and promoting the objects of the association. The management committee attends to the day-to-day administration and activities.

In associations where a board of governors and a management committee co-exist, it is essential for these two groups to work as partners. Both need to understand and support their different roles and have a clear understanding of the various areas of responsibility and authority.

It is also important to be very clear about which group is the management committee for the purposes of the Act. The Act contemplates there being only one management committee responsible at law, and the rules must clearly identify which group it is. However, in most associations, one committee is responsible for both governance and management.

This section describes the role, functions, structure and liability of management committees of incorporated associations under the Act.