Pro Bono News Alert: Have your say on the draft Associations Incorporation Regulation 2016
Fair Trading has released a draft Associations Incorporation Regulation 2016 (NSW) (the proposed Regulation) for public comment.
The proposed Regulation has been issued as the next stage in the Statutory Review of The Associations Incorporation Act 2009 (NSW) (the Act) published on 2 November 2015. The Statutory Review identified some areas in which the Act and the accompanying regulation could be improved to make it easier for associations to comply with their requirements under the Act. This will be welcomed by associations which tend to be small, not-for-profit, non-commercial organisations who generally have limited funds to spend on administrative and legal matters.
The changes in the proposed Regulation will support the amendments to the Act brought about by the Associations Incorporation Amendment (Review) Act 2016 (NSW) (you can read more about these changes in our article 'Update on Incorporated Associations', 3 May 2016).
Most notably the proposed Regulation incorporates a new ‘model constitution’ which:
- includes new provisions to demonstrate the ‘not-for-profit’ nature of associations namely that the assets and funds of the association can only be used (both while operating and on winding up) to pursue the objects of the association and not for the personal gain of any of its members; and
- updates provisions regarding the holding of meetings (including giving of notice and voting) to allow for the use of the technology which should provide some practical relief to associations.
The proposed Regulation also imposes an obligation to keep records for at least five years.
Submissions and comments on the proposed Regulation can be made to Fair Trading until 29 July 2016. It is intended that the new Regulation will be in force by 1 September 2016 when the proposed amendments to the Act will commence.