Incorporated association rules change today with more to follow – how is your organisation impacted?

We recently published a legal alert regarding amendments to the Associations Incorporation Act 1981 (Qld) (Act) that will become law today.  However, since that alert, the Queensland Government has postponed the need to comply with a couple of items as outlined below.
 
The management committee duty to disclose remuneration and other benefits and the requirement for incorporated associations to have an internal grievance policy will only become compulsory in mid to late 2023 following guidance by the Office of Fair Trading in the forms of public consultation and regulations.
 
From today, it is otherwise mandatory for incorporated associations to comply with the amendments to the Act, which:

1. impose the following duties on all management committee members, including a manager appointed by the management committee:
   1. duty of care and diligence;
   2. duty of good faith;
   3. duty to avoid abuse of powers;
   4. duty to avoid insolvency (please note this duty extends to a person who is or was not a management committee member but takes or took part in the management of the incorporated association);
   5. duty to disclose material interests;
   6. duty to record material personal interests; and
   7. duty to abstain from voting if conflicted by a material interest;
2. create personal liability for management committee members who breach the above duties;
3. require the Secretary to be at least 18 years old;
4. render the use of a common seal when executing documents optional (however, an incorporated association must amend its constitution or rules to specify if it will not use a common seal); and
5. extend Office of Fair Trading inspectors’ powers to investigate, enter premises and seize property.

We are offering to review an incorporated association’s constitution or rules to ensure compliance with the Act on a fixed fee basis.

Please contact our Litigation Team if you require assistance.

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For further information contact Harrison Humphries, Director of Litigation and Disputes Resolution.