Code of governance: Difference between revisions

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Created page with "= Code of Governance for Community-Led Housing Organisations (2021) = This page provides a '''plain-English summary''' of the ''Code of Governance for Community-Led Housing Organisations (2021)'', published by the Confederation of Co-operative Housing (CCH). It is intended to help members, committee/board members, and residents understand the '''core principles of good governance''' without needing to read the full technical document. : ''This summary does '''not repl..."
 
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= Code of Governance for Community-Led Housing Organisations (2021) =
= What is the Code of Governance? =


This page provides a '''plain-English summary''' of the ''Code of Governance for Community-Led Housing Organisations (2021)'', published by the Confederation of Co-operative Housing (CCH).
The Code of Governance sets out a framework for the effective running of community-led housing organisations such as the ASH Co-op. Community-led housing organisations are united by '''community accountability, democratic control, and local decision-making'''.


It is intended to help members, committee/board members, and residents understand the '''core principles of good governance''' without needing to read the full technical document.
Governance is the responsibility of an organisation’s '''Governing Body'''. In the case of the co-op and according to our [[ASH Co-op Rules|Rules]] this is our [[executive committee]].


: ''This summary does '''not replace''' the full Code. Organisations adopting the Code should always refer to the original document for formal compliance.''
== What is Good governance? ==
 
----
 
== What is the Code of Governance? ==
 
The Code of Governance sets out a '''framework for running a community-led housing organisation well'''. It applies to a wide range of organisations, including:
 
* Housing co-operatives
* Tenant Management Organisations (TMOs)
* Community Land Trusts (CLTs)
* Cohousing groups
* Mutual Home Ownership Societies
* Development trusts and similar bodies
 
Community-led housing organisations vary greatly in size and structure, but they are united by '''community accountability, democratic control, and local decision-making'''.
 
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== Who is responsible for governance? ==
 
Governance is the responsibility of the organisation’s '''Governing Body'''. Depending on the organisation, this may be:
 
* A Management Committee
* A Board
* The full membership meeting in General Meetings (for very small organisations)
 
The Governing Body leads and controls the organisation '''on behalf of the community and its members'''.
 
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== Good governance – what does it mean? ==


Good governance is about:
Good governance is about:
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Good governance supports both strong values ''and'' effective day-to-day operation.
Good governance supports both strong values ''and'' effective day-to-day operation.


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Having adopted the Code, ASH Co-op is expected to:
 
== Comply or Explain ==
 
Organisations that adopt the Code are expected to:


* Review their governance '''annually''' against the Code
* Review their governance '''annually''' against the Code
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* Set out plans to achieve compliance where appropriate
* Set out plans to achieve compliance where appropriate


This approach recognises that not all organisations are the same, while still promoting transparency and improvement.
= The Five Principles of Governance =


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The Code of Governance is about measuring our performance against the following criteria:


== The Five Principles of Governance ==
* '''Clarity''' – knowing why the organisation exists
* '''Accountability''' – to members and the community
* '''Leadership''' – effective, ethical and informed
* '''Delivery''' – clear roles and responsibilities
* '''Control''' – strong finances, risk management and transparency


The Code is built around '''five core principles'''.
----


== 1. Clarity of Purpose and Values ==
== 1. Clarity of Purpose and Values ==


The organisation should:
ASH Co-op should:


* Have a '''clear mission, vision and values'''
* Have a '''clear mission, vision and values'''
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=== Equality, diversity and inclusion ===
=== Equality, diversity and inclusion ===


The organisation commits to:
ASH Co-op commits to:


* Fairness and equality of opportunity
* Fairness and equality of opportunity
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=== Ethics and integrity ===
=== Ethics and integrity ===


The organisation should:
ASH Co-op should:


* Act with honesty, openness and integrity
* Act with honesty, openness and integrity
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* Manage conflicts of interest properly
* Manage conflicts of interest properly
* Ensure decisions are taken in the best interests of the organisation and community
* Ensure decisions are taken in the best interests of the organisation and community
----


== 2. Community Accountability ==
== 2. Community Accountability ==
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=== Membership ===
=== Membership ===


The organisation should:
ASH Co-op should:


* Clearly define who can be a member
* Clearly define who can be a member
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* Regulators (if a Registered Provider)
* Regulators (if a Registered Provider)
* The Charity Commission (if a charity)
* The Charity Commission (if a charity)
----


== 3. Effective Leadership and Control ==
== 3. Effective Leadership and Control ==


The Governing Body should:
The Committee should:


* Lead and control the organisation strategically
* Lead and control the organisation strategically
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* Safeguard the organisation’s assets and reputation
* Safeguard the organisation’s assets and reputation


=== Governing Body composition ===
=== Committee composition ===


Where there is a committee or board, the organisation should:
Where there is a committee or board, the organisation should:
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=== Conduct and decision-making ===
=== Conduct and decision-making ===


Governing Body members should:
Committee members should:


* Act collectively and responsibly
* Act collectively and responsibly
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* Receive induction, training and support
* Receive induction, training and support
* Have their performance reviewed annually
* Have their performance reviewed annually
----


== 4. Effective and Clear Delivery ==
== 4. Effective and Clear Delivery ==


The Governing Body decides '''how the organisation operates day to day''', whether through:
The Committee decides '''how the organisation operates day to day''', whether through:


* Volunteers
* Volunteers
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* Lease or management arrangements
* Lease or management arrangements


The organisation should:
The co-op should:


* Clearly document roles and responsibilities
* Clearly document roles and responsibilities
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=== Legal and regulatory responsibilities ===
=== Legal and regulatory responsibilities ===


The Governing Body remains responsible for ensuring:
The Committtee remains responsible for ensuring:


* Compliance with the law
* Compliance with the law
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Professional advice should be sought where needed.
Professional advice should be sought where needed.
----


== 5. Strong Systems of Control and Audit ==
== 5. Strong Systems of Control and Audit ==


The organisation should:
ASH Co-op should:


* Have clear financial controls and standing orders
* Have clear financial controls and standing orders
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=== Risk management ===
=== Risk management ===


The Governing Body should:
The Committee should:


* Understand the organisation’s risks
* Understand the organisation’s risks
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Appropriate whistleblowing policies should be in place to allow concerns to be raised safely.
Appropriate whistleblowing policies should be in place to allow concerns to be raised safely.


----
== References ==
 
== In summary ==
 
The Code of Governance is about:
 
* '''Clarity''' – knowing why the organisation exists
* '''Accountability''' – to members and the community
* '''Leadership''' – effective, ethical and informed
* '''Delivery''' – clear roles and responsibilities
* '''Control''' – strong finances, risk management and transparency


Together, these principles support strong, democratic and sustainable community-led housing organisations.
* Confederation of Co-operative Housing (2021). ''Code of Governance for Community-Led Housing Organisations''. 
  [https://www.cch.coop/wp-content/uploads/2021/05/Code-of-Governance-2021.pdf PDF]

Latest revision as of 19:10, 21 January 2026

What is the Code of Governance?

The Code of Governance sets out a framework for the effective running of community-led housing organisations such as the ASH Co-op. Community-led housing organisations are united by community accountability, democratic control, and local decision-making.

Governance is the responsibility of an organisation’s Governing Body. In the case of the co-op and according to our Rules this is our executive committee.

What is Good governance?

Good governance is about:

  • Having a clear purpose (mission, vision and values)
  • Putting the right structures and policies in place
  • Making sure the organisation is financially viable
  • Understanding and managing risks
  • Being accountable to members, residents and the wider community

Good governance supports both strong values and effective day-to-day operation.

Having adopted the Code, ASH Co-op is expected to:

  • Review their governance annually against the Code
  • Publish a statement of compliance in their annual report/accounts
  • Clearly explain where they do not comply and why
  • Set out plans to achieve compliance where appropriate

The Five Principles of Governance

The Code of Governance is about measuring our performance against the following criteria:

  • Clarity – knowing why the organisation exists
  • Accountability – to members and the community
  • Leadership – effective, ethical and informed
  • Delivery – clear roles and responsibilities
  • Control – strong finances, risk management and transparency


1. Clarity of Purpose and Values

ASH Co-op should:

  • Have a clear mission, vision and values
  • Make these publicly available
  • Regularly review progress towards them
  • Ensure they match the organisation’s legal objects

Equality, diversity and inclusion

ASH Co-op commits to:

  • Fairness and equality of opportunity
  • Actively opposing discrimination
  • Welcoming diversity
  • Setting objectives and reviewing progress
  • Reporting publicly on performance

Ethics and integrity

ASH Co-op should:

  • Act with honesty, openness and integrity
  • Have clear codes of conduct
  • Be transparent in decision-making
  • Manage conflicts of interest properly
  • Ensure decisions are taken in the best interests of the organisation and community

2. Community Accountability

Community-led housing organisations exist to serve a defined community, which may be:

  • A geographical area, or
  • A specific group of people

Membership

ASH Co-op should:

  • Clearly define who can be a member
  • Encourage active membership
  • Understand who its community is
  • Aim for membership that reflects the diversity of that community

Accountability and engagement

The organisation should:

  • Be accountable to its members and community
  • Provide clear information about decisions and performance
  • Encourage community involvement in decision-making
  • Support members to take on governance roles
  • Maintain regular two-way communication

Other stakeholders

The organisation should also be accountable to:

  • Residents who are not members
  • Partner landlords
  • Regulators (if a Registered Provider)
  • The Charity Commission (if a charity)

3. Effective Leadership and Control

The Committee should:

  • Lead and control the organisation strategically
  • Delegate day-to-day operations appropriately
  • Have clear terms of reference
  • Set strategy, budgets and business plans
  • Ensure legal and regulatory compliance
  • Oversee risk management
  • Safeguard the organisation’s assets and reputation

Committee composition

Where there is a committee or board, the organisation should:

  • Have clear rules about size and appointment
  • Ensure members understand their responsibilities
  • Use fair and transparent election or recruitment processes
  • Maintain a balance of skills, experience and diversity
  • Regularly refresh membership

Conduct and decision-making

Committee members should:

  • Act collectively and responsibly
  • Avoid conflicts of interest
  • Declare interests openly
  • Base decisions on good information
  • Receive induction, training and support
  • Have their performance reviewed annually

4. Effective and Clear Delivery

The Committee decides how the organisation operates day to day, whether through:

  • Volunteers
  • Paid staff
  • External service providers
  • Lease or management arrangements

The co-op should:

  • Clearly document roles and responsibilities
  • Set limits on delegated authority
  • Appraise performance regularly
  • Be transparent about pay and fees
  • Have appropriate HR arrangements if staff are employed

Legal and regulatory responsibilities

The Committtee remains responsible for ensuring:

  • Compliance with the law
  • Health and safety
  • Data protection
  • Safeguarding (where relevant)
  • Equality and diversity obligations

Professional advice should be sought where needed.

5. Strong Systems of Control and Audit

ASH Co-op should:

  • Have clear financial controls and standing orders
  • Receive regular financial and management reports
  • Maintain appropriate relationships with external auditors
  • Review auditor appointments periodically

Risk management

The Committee should:

  • Understand the organisation’s risks
  • Set a clear risk appetite
  • Put controls in place to manage risk
  • Review risks regularly
  • Maintain business continuity plans

Whistleblowing

Appropriate whistleblowing policies should be in place to allow concerns to be raised safely.

References

  • Confederation of Co-operative Housing (2021). Code of Governance for Community-Led Housing Organisations.
 PDF