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The principles of good governance as applied to Crown cultural agencies

Some Applicable Principles

The Securities Commission (now the Financial Markets Authority) in 2004, published a list of Principles of Good Governance and below is an adaptation for the Crown cultural sector.

  • Board members should observe and foster high ethical standards.
  • There should be a balance of independence, diversity, skills, knowledge, experience, and perspectives relevant to the organisation among board members so that the board works effectively.
  • The board should use committees where this would enhance its effectiveness in key areas while retaining board responsibility.
  • The board should demand integrity both in financial and general reporting and in the timeliness and balance of disclosures on entity affairs.
  • The remuneration of directors and executives should be appropriate to a public organisation and board fees and allowances should take the Fees Framework (or Remuneration Authority criteria) into consideration.
  • The board should regularly verify that the entity has appropriate processes that identify and manage potential and relevant risks.
  • The board should ensure the quality and independence of the external audit process.
  • The board should foster constructive relationships with stakeholders that encourage them, when appropriate, to engage with the entity.
  • The board should respect the interests of stakeholders within the context of the entity’s ownership type and its fundamental purpose and be cognisant of the entity’s Crown connection and consequent responsibilities.
  • The board shall be the ‘Guardian’ of any cultural responsibility given to it under legislation or appropriate enabling document (a number of arts, culture, heritage, sports and broadcasting entities’ enabling documents and enactments have specific cultural freedom provisions).

Other ‘Best Practice’ Resources

There are a number of very good relevant ‘Best Practice’ governance resources that are useful for the MCH ‘family of entities’. These include those listed in the Appendix.

Appendix

Web links

 


Updated on 28th February 2017