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