ition of its purpose3.how the purpose is to be achieved4.membership criteria (both explicit, such as shared interests, and implicit for example shared values)5.how the body is to be administered6.how the body relates externally7.how success is measured8.termination arrangementIn practice the constitutional details of most organizations will be more complex , interrelated and overlapping, but the basic elements need to be present in order so as to permit the organisation to function. Thus once the foundation for governance has been laid it is very important to address the heart of the issue of governance, which is the tension between achieving the objectives of the organization and the fulfillment of the personal objectives of its members and other stakeholders. Every relationship between individuals requires some trade-off of their separate interests. In healthy relationships these trade-offs are negotiated openly, explicitly or tacitly, and the bargain is kept. Where the trade-offs are not recognised, or the bargain is imposed from one side or is undermined unilaterally by stealth, there can be no healthy relationship. This process is at the heart of governance.Stakeholding is, basically about ownership. In Company Law it belongs exclusively to ordinary shareholders; other classes of shareholder have lesser rights to reflect the lower risk attaching to their investment. But in an organisation stakeholding implies differently for different interest groups. For the directors it can be seen as the right to secure tenure and to deploy the companys assets as they see fit. For employees it can be about having a safe job and prospects to advancement, which they may wish to protect by membership of trade unions. For customers it can be about the right to demand outstanding service for an economic price; for suppliers and distributors it can be about a stable and profitable trading relationship, for government it is about providing sufficient j...
