Public Sector Governance: considerations in structuring boards of directors

Public Sector Governance: considerations in structuring boards of directors

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Commonwealth authorities and companies are important arms of the government. In Australia, the governance of most government authorities and companies is founded upon the Commonwealth Authorities and Companies Act 1997 (CAC Act) and to some extent the Financial Management and Accountability Act 1997 (FMA Act). As a result, the Australian Public Sector authorities are influenced by the principles of the corporate law and governance drawn from the private sector. Although government influence still exist, CAC boards are considered as autonomous corporate boards, directed mainly with a scope of meeting government operational, service and commercial ends. This supports the idea that boards of CAC authorities can also have a degree of autonomy and independence from the central government. The corporate features of CAC boards, particularly the potential to add external board members, also suggest that they have a valuable role in bridging the gap between government and outsiders (i.e. stakeholders) to build important associations and partnerships.

What considerations are taken into account in the process of structuring and appointing members in the board of directors in the Australian public sector authorities?

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