Governance Best Practices for Community Schemes
Establish strong governance foundations with proven best practices for board structure, financial management, and resident engagement.
Governance Fundamentals
Effective governance is the foundation of a well-run community scheme. It encompasses decision-making processes, accountability structures, financial management, communication systems, compliance systems, and dispute resolution mechanisms.
Good governance protects residents' interests, reduces personal liability for trustees, attracts investment, improves efficiency, and ensures compliance with legal requirements.
Board Structure and Composition
The board should be appropriately sized and composed to ensure effective governance:
- Board size: 5-7 trustees provide adequate representation while remaining efficient
- Diverse skills: Include financial, legal, property management, and communication expertise
- Clear roles: Define chairperson, treasurer, secretary, and trustee responsibilities
- Board rotation: Implement 2-3 year terms with regular rotation for fresh perspectives
Meeting Management
Conduct effective annual general meetings and board meetings:
- AGMs: Hold annually with proper notice, detailed agendas, and documented decisions
- Board meetings: Hold regularly (typically monthly) with detailed minutes
- Procedures: Establish clear quorum, voting, and conflict of interest procedures
Financial Governance
Manage scheme finances responsibly with budgets, controls, and reporting:
- Annual budgets: Develop realistic budgets with resident approval
- Financial controls: Implement dual authorization, monthly reconciliations, and audits
- Transparency: Provide regular financial reports to residents
Communication and Transparency
Keep residents informed and engaged through regular communication and transparent governance practices.