The inquiry will review how chief executives’ views on governance are evolving, and aims to raise the overall level of board performance and ensure greater accountability in charity leadership.

Stephen Bubb, chief executive of Acevo, said the third sector had displayed a “shameful apathy” around governance procedures.

“Calls for more professionalism in governance are often met with a ‘no change needed’ response, or a complacent defence of the status quo. We want to uncover the problems, learn from the best, and put this issue at the top of CEOs’ agendas”.

“A core task for the chief executive is ensuring that their board works well,” Bubb added. “The relationship between chair and chief executive is the lynchpin around which good boards operate. As the sector grows in strength and influence we need to review our governance and ensure it is fit for purpose.”

Rodney Brooke, chair of the General Social Care Council and former chief executive of Westminster Council, is to chair the inquiry. “I am delighted to have been asked to chair,” Brooke said. “High standards of governance are essential to success. The third sector is currently enjoying unprecedented levels of attention from all the main political parties. To confirm that they merit this attention, organisations must take a tough look at their governance procedures.

The inquiry is to focus on four key issues:

• Whether governance procedures are sufficiently robust
• The extent to which sector initiatives have assisted chief executives
• Whether the currently regulatory framework helps or hinders charities to improve their governance
• Identifying the initiatives that will support chief executives in reforming governance where necessary

The inquiry will also involve a survey of leading opinion makers in the UK. MPs are the first to be surveyed, with local authorities also to be quizzed on their experience of third sector governance.