If no, what alternative option(s) would you If no, what alternative option(s) you propose? propose? What conduct is expected of board Who has oversight over executive and members? CEO remuneration? The MA Act does not contain any provisions relating The MA Act does not contain any provisions relating to the conduct of MAV’s board members. to the CEO of MAV. Under the MAV Rules, the CEO is appointed by the REFORM OBJECTIVES board of management and is responsible for the day The proposed reforms seek to provide a framework to day management and administration of MAV. The for good governance in the carrying out of the board board of management annually sets performance of management’s functions. objectives for the CEO and regularly monitors the performance of the CEO. The proposed reforms seek to: establish that the board of management has REFORM OBJECTIVES the ultimate responsibility to ensure good The proposed reforms seek to provide transparency governance of the organisation and certainty for CEO employment consistent with define what conduct is expected of board the reforms to council CEO remuneration and members contract management set out in the Local Government Act Review Directions Paper. increase confidence in MAV’s governance processes. PROPOSED REFORM PROPOSED REFORMS Provide that the board of management may appoint a CEO for the day to day management Provide that the board of management must and administration of MAV. have processes in place for dealing with conflicts of interest, misuse of position and the Provide that MAV must have in place a CEO prevention of fraudulent behaviour. remuneration policy that broadly aligns with the Victorian Public Sector Commission’s Policy on Provide that board members must at all times in Executive Remuneration for Public Entities in the exercise of the functions of their office act: the Broader Public Sector. honestly in good faith in the best interests of MAV QUESTIONS with integrity Do you support the requirement for a in a financially responsible manner remuneration policy? with a reasonable degree of care, diligence If no, what alternative option(s) would you and skill propose? in compliance with the MA Act and MAV Rules. QUESTIONS Do you support the addition of conduct provisions for the of management?
If no, what alternative option(s) would you propose? What conduct is expected of board members? The MA Act does not contain any provisions relating to the conduct of MAV’s board members. REFORM OBJECTIVES The proposed reforms seek to provide a framework for good governance in the carrying out of the board of management’s functions. The proposed reforms seek to: establish that the board of management has the ultimate responsibility to ensure good governance of the organisation define what conduct is expected of board members increase confidence in MAV’s governance processes. PROPOSED REFORMS Provide that the board of management must have processes in place for dealing with conflicts of interest, misuse of position and the prevention of fraudulent behaviour. Provide that board members must at all times in the exercise of the functions of their office act: honestly in good faith in the best interests of MAV with integrity in a financially responsible manner with a reasonable degree of care, diligence and skill in compliance with the MA Act and MAV Rules. QUESTIONS Do you support the addition of conduct provisions for the of management? If no, what alternative option(s) you propose? Who has oversight over executive and CEO remuneration? The MA Act does not contain any provisions relating to the CEO of MAV. Under the MAV Rules, the CEO is appointed by the board of management and is responsible for the day to day management and administration of MAV. The board of management annually sets performance objectives for the CEO and regularly monitors the performance of the CEO. REFORM OBJECTIVES The proposed reforms seek to provide transparency and certainty for CEO employment consistent with the reforms to council CEO remuneration and contract management set out in the Local Government Act Review Directions Paper. PROPOSED REFORM Provide that the board of management may appoint a CEO for the day to day management and administration of MAV. Provide that MAV must have in place a CEO remuneration policy that broadly aligns with the Victorian Public Sector Commission’s Policy on Executive Remuneration for Public Entities in the Broader Public Sector. QUESTIONS Do you support the requirement for a remuneration policy? If no, what alternative option(s) would you propose?
Municipal-Association-Act-review-consultation-paper-May-2017.docx