Code of governance

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 is built around five core principles.

1. Clarity of Purpose and Values

The organisation 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

The organisation commits to:

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

Ethics and integrity

The organisation 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

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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

The organisation 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)

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3. Effective Leadership and Control

The Governing Body 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

Governing Body 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

Governing Body 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

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4. Effective and Clear Delivery

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

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

The organisation 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 Governing Body 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.

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5. Strong Systems of Control and Audit

The organisation 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 Governing Body 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.

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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.

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References

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

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