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Pro Bono News Alert: NSW Fair Trading review of Associations Incorporation Act published

News Alert 08 December 2015

NSW Fair Trading has published its report on the review of the Associations Incorporation Act 2009 (NSW) (the Act). The review broadly found that the Act has been successful and is operating consistently with its policy objectives.

However, the report made a series of recommendations, which include:

  • Removing the ability of the Director-General to refuse a registration application on the basis that the association did not reserve a name (section 7(2)(b));
  • Removing the requirement for a special resolution and approval from the Director-General to amend a constitution in circumstances where an association has adopted the model constitution and the NSW Parliament amends the model constitution (section 25);
  • Allowing electronic voting when association members are voting remotely, provided this is permitted by the association’s constitution (section 38);
  • Creating a duty of each member of a committee of an association to carry out his or her functions for the benefit, so far as practicable, of the association and with due care and diligence and include protection from personal liability for members of the committee who act in good faith. (Part 4 Division 1);
  • Allowing the Director-General to cancel an association’s registration where it is in the public interest to do so (section 76);
  • Allowing statutory declarations to be made by one (and not two) committee member (section 72(2)(c)); and
  • Requiring the inclusion of a clause in an association’s constitution dealing with winding-up.

The report also recommended that the Model Constitution be revised and a reduction in the fee payable for Tier 2 associations when lodging annual financial statements within the due period.

You can view or download the Report on the statutory review of the Associations Incorporation Act 2009 from the NSW Parliament website.

Karen Keogh, Partner - National Pro Bono Leader

News Alert 08 December 2015
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