AICD submission to the Expert Council on University Governance

The AICD is represented as one of ten members of the Expert Council which has been asked to draft University Governance Principles and Recommendations (Principles) to the Education Ministers, based on 10 priority areas identified by Education Ministers. Those priority areas are designed to enhance the accountability, transparency, engagement and representation of university governing bodies.

The AICD’s submission has been informed by consultation with experienced University Council members across the sector, industry experts and stakeholders, noting a range of perspectives reflective of their individual university’s unique context. Many highly experienced AICD members serve on University Councils and Council committees and the sector overall benefits from their extensive skills and experience from governing large complex organisations across the private, public and NFP sectors.

We recognise there are areas of opportunities for universities to lift governance and risk oversight but caution against increasing the level of prescription regarding the appointment of Council members. Ultimately, University Councils are best positioned to determine the appropriate composition needed for the governing body, whilst respecting the legislative requirements of students, staff and government to elect and appoint their representatives. University governance has particular characteristics – such as the tripartite model and its quasi-Parliamentary nature - and this context should be acknowledged in the framing of university governance principles.

Regardless of how members are individually appointed, the University Council collectively is accountable for acting in the best interests of the university as a whole, as outlined in the relevant governing legislation.

Our key points in the submission were:

• Member feedback has been strongest in relation to the overall level of governance and regulatory and jurisdictional complexity, highlighted by the tripartite governance structure of the University Councils, Academic Boards and senior management, along with the number of subsidiary Council committees, and other advisory bodies that exist. Members have reflected on the quasi-Parliamentary nature of individual University Councils when compared to other board roles across the public, private and NFP sectors.
• Given the representative model, it is vital that the governing body retains the ability to appoint Council members with the current and future focused skills to help navigate the university through a strategically complex environment. The Chancellor’s role should be respected and reinforced recognising their unique role.
• Whilst we support Principles being devised to establish a strong baseline for university governance standards, they should apply only on an ‘if not why not’, rather than mandatory basis. Such an approach would recognise some of the structural constraints around effective governance, as well as the diversity of the sector (ranging from small regional universities to their large metropolitan counterparts).
• Although such matters are often governed by the relevant state or federal statute, there would be benefit in seeking to reduce the number of members on University Councils to support more effective governance. Currently, Council committee and/or advisory structures often need to be relied upon to supplement Council deliberations where the requisite range of skills may not be present on the Council.
• The AICD supports good governance in the university sector through an ongoing partnership with the University Chancellors Council (UCC) to design and deliver a three-day governance course (Governance in the University Sector – Foundations of University Governance). This course caters to Council members, members of official university committees, senior staff and staff with governance responsibilities. The AICD has also produced a range of free resources to assist boards on a range of governance topics.