Presentation - Introduction to New Associations Law

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Making The Change

Consumer Protection is conducting information sessions on the new associations law to assist associations in making the change before the expected commencement date on 1 July 2016.

This presentation covers the following topics:

  • Effect of new laws on existing incorporated associations
  • Overview of changes
  • Prescribed Model Rules
  • Transitional requirements

For further information on the sessions being conducted visit out Associations events page.

Presentation slides

Making the change – Associations Incorporation Act 2015 (Title slide)

Today’s Topcis (Slide 2)

  • Effect of new laws on existing incorporated associations
  • Overview of changes
  • Prescribed Model Rules
  • Transitional requirements

The New Law (Slide 3)

  • Anticipated that the Associations Incorporation Act 2015 and regulations will come into effect on 1 July 2016.
  • Applies to over 18,000 not for profit groups
  • Replaces existing Associations Incorporation Act 1987.

Key Facts (Slide 4)

  • No need to reapply for incorporation.
  • Committee membership unchanged
  • Membership unchanged
  • Applications in process accepted

Overview of Changes (Slide 5)

Transition Pack 1, page 7

Rules of Association – Schedule 1 (Slide 6)

  • All associations will need to have all of the Schedule 1 requirements in the rules.
  • Schedule 1 will be updated to include requirements to have provisions regarding:
    • dispute resolution processes;
    • financial year; and
    • distribution of surplus property.

Annual General Meeting (Slide 7)

  • Still required to be held once in every calendar year.
  • Associations will have 6 months after the end of the financial year to hold the AGM (subject to any other requirements in the rules).
  • An application for an extension will still be required to hold the meeting outside this timeframe.

Record Keeping (Slide 8)

Transition Pack 1, page 3 to 5

  • Association must give each new member a copy of the rules when they join.
  • Still required to keep up to date Register of Members, Record of Office Holders and Rules.
  • Register of members may include email address in place of residential or postal address (subject to any other requirements in the rules).

Financial Records and Reporting (Slide 9)

  • Still required to keep records that explain the financial transactions and present annual accounts at each AGM.
  • Different requirements depending on revenue Tier.
  • Tier 1: $0 - $250,000 – no audit required.
  • Tier 2: $250,000 - $1M – accounts to be reviewed.
  • Tier 3: over $1M – accounts to be audited.

Committee Disclosures of Interest (Slide 9)

  • Still required to disclose any interests in contracts being considered by the Committee.
  • Requirements will apply to all Material Personal Interests.
  • In addition to committee meeting, interest must also be disclosed at next general meeting.
  • Committee member with interest will be required to leave the room during discussion and voting.

What’s New? (Slide 10)

Transition Pack 1, page 7

  • Committee duties
  • Dispute resolution
  • Commissioner’s powers
  • Amalgamations
  • Notification requirements

Committee and Officer Duties (Slide 11)

  • Existing common law duties will be codified in the Act.
  • Committee members must exercise their duty:
    • with care and diligence;
    • in good faith and for proper purpose;
    • not misuse their position; not misuse information obtained;
    • not to allow the association to trade when insolvent.

Dispute Resolution (Slide 12)

  • Internal member disputes that cannot be resolved using the processes in the rules can be heard by the State Administrative Tribunal (SAT) who can:
    • refer the dispute for mediation; or
    • give orders:
  • directing that rules to be followed;
  • enforcing the rights and obligations of association and members.

Other New Provisions (Slide 13)

  • Commissioner’s powers
  • Amalgamations
  • Notification requirements

Prescribed Model Rules (Slide 14)

Transition Pack 1, page 6

Model Rules (Slide 15)

  • Included in the Regulations
  • Not compulsory to adopt. Associations can still develop their own rules if they wish.
  • At the end of the 3 year transition period, if association rules do not comply (ie Schedule 1 item missing) relevant clause of the Model Rules will apply.

Transitional Requirements (Slide 16)

Transition Pack 1, page 2 and 6

Address Notification (Slide 17)

  • All incorporated associations must provide the Department of Commerce with details of their current address by 29 September 2016.
  • Associations will be able to submit this information online.

Updating the Rules (Slide 18)

  • Rules must be amended to comply with new law by 1 July 2019.
  • All association rules must include provisions for all Schedule 1 matters.
  • During the 3 year transition period the committee may pass necessary changes at a meeting (without convening general meeting of members)

Updating the Rules (Slide 19)

  • Use model rules or re-write
  • Lodge with Consumer Protection
  • Include notice of the alterations with the notice for the next AGM sent to all members.
  • Future changes passed in usual way

Finding More Information (Slide 20)

Resources and Publications (Slide 21)

  • Transition pack
  • Associations newsletter
  • Online resources
  • Information sessions

New Law References (Slide 22)

The new law: State Law Publisher: Online Legislation Databases - Acts in force

Draft prescribed model rules:

Regulations: not currently available

Thank You (Slide 23)

Department of  Commerce
Consumer Protection Division
1300 304 074
Associations email 
Associations section of the website

Twitter: @ConsumerWA
Facebook

Transition Pack 1

Pack 1 covers changes to make when the new law commences, financial reporting tiers, updating rules, key changes to the way the association will run and frequently asked questions.

Transition Pack 1

Consumer Protection
Training material
Last updated 08 Sep 2017

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