39 The many forms of partnership give rise to different legal and governance structures. Legislation stipulates the governing forms for some partnerships: the Charity Commission approves the trust deeds of registered charities and companies limited by guarantee have their memoranda and articles of association. The majority of partnerships - including LSPs - are unincorporated associations; they often adopt a constitution and a memorandum of understanding or terms of reference as a governing document.
40 Some practitioners argue that partnerships should not be excessively governed, to do so would jeopardise their principal aim of creating an environment in which innovation can flourish. The more governance controls tie them down, so the argument goes, the more this innovation will suffer; partnerships should be allowed to take risks without the undue burdens that the checks and balances of governance bring. On the face of it, the argument is attractive, but it may not serve the public interest well.
41 Disputes arise and partnerships break down for various reasons. When this happens, there must be clear protocols for managing conflict. Without them, there cannot be sound internal accountability between partners and it may not be possible for the public to get redress for complaints. Chapters 3 and 5 discuss these issues in more detail.
42 Each partner organisation has its own governance and accountability structure, codes of conduct and risk management arrangements. The varying objectives, legal forms and membership found in partnerships makes it impossible to apply a one-size-fits-all model of partnership governance. In 2004, INLOGOV concluded that: 'governance systems should be proportional to the responsibilities and risks of the partnership' (Ref. 7). The ODPM recently reached similar conclusions following its action-learning research on LSP governance (Ref. 8). We agree with these views, but believe strongly that partners must reach agreement on how they will govern their collaboration. It is vital that there is clarity among partners about purpose, membership, roles and responsibilities, among other things. This agreement should be set out in formal agreements.