#28232
scotlandx
Strataguru

    The wording of section 41 conflicts with itself, subsections (1) and (3) use the word “appoint”, subsection (4) refers to “election”.  There are a few mistakes/holes in the legislation, think this is one of them.

    As a general governance issue, the constitutions of companies generally provide that the Chair of the Board is elected/chosen by the Board. While the process for determining who is on the Board will vary depending on the type of company, ranging from publicly listed companies to companies limited by guarantee, this reflects the general principle that the Directors are best placed to determine who amongst them should hold office.  Bear in mind that the Chair of the Strata Committee does not have any additional powers other than chairing meetings, despite what people might think (including megalomaniac Chairs).

    It’s slightly different for incorporated associations where generally the members elect the President of the Management Committee.  You also see that with some companies limited by guarantee of a particular type, such as medical associations.