Winter is coming – and so are new duties for incorporated association board members

Changes to the Associations Incorporation Act 1981 (Act) have steadily been implemented since 2021.  The remaining changes will come into effect on 22 June 2022.

The impending amendments include:

1. rendering it optional for incorporated associations to use a common seal when executing documents;
2. requiring secretaries of incorporated associations to be 18 or older;
3. removing duplicated annual reporting for incorporated associations that are charities or community purpose organisations; and
4. extending the powers of Office of Fair Trading inspectors.

More importantly for board members of incorporated associations (i.e. management committee members), they will become personally liable for breaches of their following new statutory duties:

• a duty of care and diligence;
• a duty of good faith;
• a duty to avoid abuse of powers;
• a duty to avoid insolvency;
• a duty to disclose material personal interests;
• a duty to abstain from voting in certain situations; and
• a duty to disclose remuneration and other benefits.

Incorporated associations must also implement an internal grievance policy no later than 22 June 2022.

CGLaw Director, Harrison Humphries is presenting to incorporated association boards, providing insight into the approaching amendments and what they practically mean for management committee members.

If you would like Harrison to deliver this informative presentation to your incorporated association’s board, please contact Harrison’s Paralegal, Alison Cassidy on 07 4688 2188 or at alison@cglaw.com.au to book your presentation.

We are also available to review and advise on your incorporated association’s constitution/rules to ensure compliance with the Act.

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For further information please contact Harrison Humphries, Director.