Cohousing-L Mailing List: Re: Governance structure--LLC?

[Sharon Villines (sharon]

On Jan 10, 2007, at 1:04 PM, Lisa Anthony wrote:

> We are a forming Senior Cohousing group in Chapel Hill, NC and are 
> trying to
> decide about a governance structure.  What governance structures are 
> most
> communities using-LLC's??

And LLC is a legal structure, not a governance structure. Some legal 
structures require elements of a governance structure but whatever 
legal structure you use, you should also adopt a good governance 
structure. What is required by the legal structure will probably not 
meet the needs of a growing organization in terms of governance.

A governance structure steers an organization. It guides it toward its 
aim by determining what activities will occur within the organization, 
who will perform what functions and tasks, who will make what 
decisions, what decision-making method will be used for different kinds 
of decisions, who is accountable, etc.

Most legal structures recognize a top down board-governed structure 
with a President, Secretary, and Treasurer who are responsible for all 
financial decisions. The concern in the required legal document is to 
ensure that external lenders and contractors get paid. The Board is 
thus financially responsible for the money that is to be paid to 
outsiders. Legal requirements usually stop there.

Of course, I recommend sociocracy as the best governance structure, 
whatever legal structure you use.

Sharon
----
Sharon Villines
http://www.sociocracy.info