Principle 5: The Rulebook

Documents that outline duties, powers, roles and responsibilities

An organisation should clearly define and document its structure and the duties, responsibilities and powers of members, directors, committees and management.

5.1 - The organisation should be a legal entity incorporated under the legislation which best fits its size, need and jurisdiction.

5.2 - The organisation should have a staggered rotation system for directors, with term limits and a maximum tenure of no longer than 10 years.

5.3 - A director who has completed the maximum tenure on the board is not eligible to stand as a director for that organisation for a period of at least three years.

5.4 - The board has a process for inducting new directors.

5.5 - The board operates under a documented board charter.