Uncertain times for volunteer directors

• Despite the 'switching off' of provisions relating to director's duties for directors of not-for-profit companies also registered as charities with the ACNC, it is recommended that directors adopt best practice and operate as if the provisions still applied.
• Directors of not-for-profits must now observe the five governance standards prescribed by the ACNC Act.
• To fulfil the duty of good faith under the Corporations Act directors must exercise independent judgment.

In the past, many people, without hesitation, would volunteer to be a director or board member of a not-for-profit organisation. However, we are in uncertain times, as recent litigation has caused concern for some volunteer directors and many more are now seeking some form of protection from their notfor-profit organisations for their potential exposure in these roles.