
Anthony Collins Solicitors scooped ‘Excellence in Client Service - Private Clients’ at Birmingham Law Society’s 2021 Legal Awards.
Take Mr M, for example – Mr M was a tenant board member of his local housing association. Mr M, being a community minded man, got involved in supporting the vulnerable elderly couple down the road. He would take them shopping and sort out their Sky subscription. However, with the couple concerned being barely literate, he was also taking a “percentage” on top of the subscription, without, of course, their knowing…
Or take Ms O – a well-known activist who ended up on the board of a charitable company leading a community regeneration project on her “patch”. Ms O was a vocal, strong minded person, who made her views clear, but had a reputation for being fair and robust – until one day in a board meeting she overstepped the mark and used clearly racist language.
The conduct of volunteers in any organisation, even at senior board member level, can fall short in a wide variety of ways, often not as obvious as those set out above. Over the years, Anthony Collins Solicitors have had to deal with board member issues for consumer co-operatives, housing associations, social enterprises and charities, and there are a few (perhaps obvious) useful truths which apply in any such situation.
First, and at some point when you are not in the midst of a dispute, review your rules to make sure there is clear provision for the removal of board members for misconduct. Not all rules contain such provisions, and not all such provisions are clear. Ideally, make sure that if the allegations are serious, there is the ability to suspend the board member (or members) concerned – there is some doubt, certainly for limited companies, about whether a board member can be legitimately suspended unless there is a clear power in the rules to do it.
Secondly (and again not in the heat of the moment) at least consider having a procedure for dealing with complaints about the conduct of board members. This could look something like the following:
Think about having a board code of conduct if you don’t have one already. Educate your board as to what they should expect of each other. Talk about how people behave in meetings, what they disclose outside and how they talk to staff. Help board members be clear about their role and provide training to them to enable them to understand their duties and responsibilities..
Thirdly, if and when an issue about board member conduct arises, use the procedure. If you have an agreed process and you don’t keep to it, there are court cases which say any decision your organisation purports to make could be invalid – not because the decision was wrong (necessarily), but because you didn’t do what you said you were going to do.
Above all, don’t:
Dealing with board member misconduct is no fun, and it can be a drain on time, funds, and energy – but it needn’t be the end of the world if it is handled properly, and it can be even be a learning experience for those involved.
For more information or to discuss this article further please contact Sarah Patrice on 0121 214 3655
Anthony Collins Solicitors scooped ‘Excellence in Client Service - Private Clients’ at Birmingham Law Society’s 2021 Legal Awards.
Anthony Collins Solicitors (ACS) has appointed a new partner to its Manchester office in a move to grow its presence in the North West.
The monthly round-up from the Anthony Collins Solicitors charities team
A party seeking to restrict another's commercial activities must consider whether such terms are normal in similar, factual and contractual circumstances.
This ebriefing considers the Government’s proposals for challenges, as set out in Chapter 7 of the Green Paper entitled 'Fast and fair challenges'.
We’re delighted to announce that we have been ranked in the top five national legal advisers in the Top 3000 Charities 2021 directory.
The Law Commission published its report on Technical Issues in Charity Law in September 2017 following a public consultation.
Changing charitable purposes and amending governing documents.
To receive invitations to our events, as well as information and articles on legal issues and sector developments that are of interest to you, please sign up to Newsroom.