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Important information for all Incorporated Associations
Associations Incorporations Amendment Bill 2010
The Associations Incorporations Amendment Bill 2010 has been passed by Parliament.
This has made significant changes to the law that regulates associations and will commence in 2011.
The key changes relate to additional duties for Committee or Board members, and extend these duties to not only committee members, but the public officer/secretary, and an employee who makes decisions affecting the whole, or substantial part of the association.
There is also a new requirement for an incorporated organisation to indemnify Committee or Board members and a new three-tiered annual reporting scheme, as well as the removal of the prohibition on trading. The amendments also clarify the rights of members and set out dispute resolution and grievance procedures.
These changes affect Victorian incorporated associations only and the Model Rules will be re-drafted to reflect the amendments.
These changes have been passed through Parliament, and it is anticipated that they will come into effect in mid to late 2011.
For further information on these changes and a range of legal information resources specifically developed for Victorian not-for-profit community organisations go to www.pilch.org.au/community_org.
If you have any enquiries please contact City of Casey Customer Service on 9705 5200.
Association Incorporation Act 1981 - 2009 amendments
The Victorian Government made several amendments to the Associations Incorporation Act 1981 in April 2009, a précis of which is included below.
If you have any enquiries about this please contact City of Casey Customer Service on 9705 5200.
Summary of 2009 amendments to the Associations Incorporation Act 1981
Returning documents of an association
All office holders, former office holders or members of an incorporated association are now required to return any documents that belong to the association.
The documents must be returned to the committee within 28 days after they cease to hold those positions or when they cease to be a member of the association.
Passing a special resolution
The notice of a proposed special resolution must set out the full details of the proposed special resolution.
It must be provided to members of the incorporated association at least 21 days before the meeting at which the special resolution will be voted upon.
Also, the notice now must make it clear that the resolution is being proposed as a special resolution.
Documents provided to the Registrar of Incorporated Associations
The Registrar may now refuse to register or receive a document submitted by an incorporated association if the Registrar is of the opinion that the document is not a valid document of the association.
The Registrar now has the power to investigate the document’s validity. The Registrar will also have the power to only accept some of the rule changes if the document relates to a special resolution to alter the rules of the association.
Removal of auditor
An incorporated association may now only remove its auditor from office by resolution passed at a general meeting of the association.
The association must give notice of the proposed resolution to all members, the auditor and the Registrar.
The auditor can make written representations to the secretary of the association and request that a copy be given to all members.
Magistrates Court Actions
A number of matters relating to incorporated associations can now be referred to the Magistrates’ Court of Victoria. These are:
- a member of the association or the Registrar can apply to the Magistrates’ Court for an order restraining the association from doing an act that is outside the association’s statement of purposes or rules. It needs to be emphasised that the Registrar may only apply to the Court if the Registrar is satisfied that it is in the public interest to do so.
- the Registrar, after an investigation into the affairs of an association or the working and financial condition of the association, can apply to the Magistrates’ Court for the appointment of a statutory manager if it is in the interests of its members, its creditors or the public.
- a member of an association will be able to apply to the Magistrates’ Court for an order preventing an association from engaging in oppressive conduct. Oppressive conduct includes conduct that is unfairly prejudicial to, or unfairly discriminatory against, a member of the association or is contrary to the interests of the association as a whole (former members can also apply within six months of their membership ceasing).
Voluntary winding up and cancelling the incorporation of the association
A small association that has:
- less than $10,000 in assets
- has no outstanding debts or liabilities, has lodged all annual statements and paid all required fees under the Act
- is not a party to any legal proceedings
may now apply to the Registrar for voluntary cancellation of its incorporation.
On winding up, associations are now prevented from distributing any surplus assets to members or former members. Surplus assets are the amounts left after satisfaction of all debts and liabilities and the cost of winding up.
Any existing associations that have rules approved before 8 April 2009, which provide for the distribution of any surplus assets to members, will not be subject to the new provision relating to the distribution of surplus assets.
There are special circumstances where assets may be distributed to members or former members. Please see Division 3A, Section 36CA of the Act for full details.
Legislation links
Association Incorporation Act 1981 - includes 2009 amendments
Association Incorporation Amendment Act 2009 – amendments only