Corporate Governance

Development History

1. Founded in 1968, the Neighbourhood Advice-Action Council had a sound structure of governance, with The Rev. Dr. James M. N. CHÍEN as the chairman, and an executive committee composed of professionals from all walks of life, as well as independent financial audits carried out by auditors. In 1992, the Council registered as a company limited by guarantee in accordance with the Hong Kong Companies Ordinance (Cap 32) and established its Memorandum and Articles of Association, membership system, decision-making and supervisory units, laying a solid foundation to corporate governance. As the Hong Kong Companies Ordinance (Cap 622) took effect in 2014, the Council has taken appropriate action accordingly. The revisions for the Memorandum and Articles of Association were complete in 2015, while the “Members and Committee Members’ Handbook” detailing the rights and responsibilities was published in the same year.


2. Since 1992, the Council has registered as a tax-exempt charity under section 88 of the Inland Revenue Ordinance.


3. To further strengthen corporate governance, the Council formed a “Task Force on Corporate Governance and Board of Directors Function” in 2011 to provide direction to corporate governance and accountability. The task force was transformed into a standing committee in 2015.


4. Since 1 July 2014, the Council abided by the “Best Practice Manual” of the Social Welfare Department to enhance its governance guidelines in three categories such as financial management, human resource management and corporate governance and accountability.


5. To strengthen the corporate governance of our Council and follows the relevant guidelines, the Information on the Best Practice Manual Guide for The Neighbourhood Advice Council (Traditional Chinese Version only) has been compiled in 2019. It has been endorsed by the Executive Committee and has been published in NAAC Website for staff and the public disclosure.

Governance Structure and Objectives

  1. The highest governing structure of the Council is the Annual General Meeting, General Meeting of Members’ Representatives and the Executive Committee (under which has 10 sub-committees, including Management Sub-Committee, Budget and Financial Sub-Committee, Internal Audit Sub-Committee, etc.). Not depending on the management level, these bodies aim to ensure sound corporate governance through providing strategic guidance, ensuring abidance to ordinances, proper financial management, keeping accountability to donors, service users, staff, stakeholders, etc., and handling benefits or related parties with fair judgment while balancing the demands of all parties.
     

  2. The Executive Director is appointed by the Executive Committee to manage the Council and to lead the 5 central administrative divisions (Budget and Finance Division, Human Resources Division, Administrative Division, Internal Audit Division and Information Technology Division) and the 9 service divisions (Family and Children Welfare Service Division, Youth Service Division, Elderly Service Division, Rehabilitation Service Division, Community Development Division, Mainland Service, Education Service Division, Health Care Service Division and Social Enterprise Division. Together with senior staff in assistance to the Executive Director, effective communication, smooth operation, proper supervision and excellent service are ensured.

©2018 by The Neighbourhood Advice-Action Council.