NHF to publish new model rules in 2011

 
Since the NHF last published its model rules in 2005, the regulatory system has evolved with greater emphasis being placed on boards duties to uphold the best standards of governance and to effectively monitor the financial health of their association.

In response to this, the NHF has spent the last few months updating its model rules and these will be published in early 2011.

Over this period, Richard St. John Williams, a partner in Cobbetts' housing team, along with a number of company secretaries, the Charity Commission and the TSA has been working with the NHF to update their model rules. 

Naturally, a number of the changes reflect updates in legislation and regulator. However, for many associations whose rules are based on previous NHF model rules, the new model rules will provide greater flexibility for associations to develop governance arrangements that support their individual cultures. The changes include:

• Developing the responsibilities of both the board and of individual board members – through, for example, the board being under positive obligations to (i) satisfying itself about the financial information it receives; and (ii) undertake board and individual board member appraisals.

• Strengthening a board's ability to implement succession-planning through the election of board members - the changes reflect the fact that boards invest considerable time and energy recruiting suitable members (through adverts and interviews, etc).

• The board being responsible for establishing a code of conduct governing, amongst other things, the circumstances when board members may receive benefits from their association - this follows the repeal of the old Schedule 1 regime.

• Greater housekeeping flexibility – for example, through greater ability to conduct business electronically, to hold meetings on short notice and to pass written resolutions. These are similar to the provisions contained within the Companies Act 2006.

• Simplifying significantly the provisions relating to an association's ability to enter into interest rate derivate transactions and, for the first time, permitting associations to enter into currency swaps.

If you would like to learn more about the new model rules and what they would mean for your association, please contact:

Richard St John Williams

Tel: 0845 165 5526

richard.stjohnwilliams@cobbetts.com