Governing document
The governing document sets out the purpose for which the organisation is established and how it is to be operated. Its form is determined by the chosen legal structure of the organisation, the most usual being:
- Memorandum and Articles of Association if it is a company or community interest company
- Trust Deed, Declaration of Trust or even a Will if it is a trust
- Constitution or Rules if it is an unincorporated association, or
- Rules if it is an industrial and provident society.
The governing document will have an Objects Clause that sets out the purposes of the organisation and parameters of its activity. Those running the organisation cannot act outside the objects, and the governing document will also contain a list of powers that are available to be utilised in delivering the objects – typically there will be a ‘catch-all’ general power that permits anything legal to be done in furtherance of the objects too. The form of the memorandum & articles, and the IPS Rules, are determined by statute.
In addition to the objects and powers clauses these documents will contain all the administrative procedures and the rules necessary to run the organisation. They will also determine the make up and administration of the governing body, as well as the parameters and of their powers and responsibilities. Provision will be included for general meetings where there is a membership, as well as terms upon which the organisation can be dissolved and its assets (if any) distributed.