Members hold the Academies Trust Board to account for the effective governance of the Trust but have a minimal role in the running of the Trust. It is the Academies Trust Board, Directors, who are the organisation’s key decision makers.
However, Members hold the responsibility for critical decisions, especially if the Trust is deemed to be failing.
Academy Trusts are set up as charitable companies limited by guarantee. As limited companies, it is the charity which is liable for its debts, not the people behind in, who are protected by limited liability. In the case of Academy Trusts, Members’ liability is limited to £10.
While Members have no day-to-day or week-to-week role in running the Trust, a key responsibility is the appointment or removal of Directors. If the Trust is not achieving its purpose the members must consider if this is because the Directors are failing to carry out their three core governance functions. If they conclude they are not, Member need to consider whether to remove Directors, or if other action is required, such as commissioning an external review of governance.