An association may apply, or be directed by NSW Fair Trading, to voluntarily cancel its incorporation.
The procedures to voluntarily cancel incorporation are set out below.
An association that is unable to pay its debts cannot apply to voluntarily cancel its registration. Associations in this position should seek immediate independent advice from a solicitor or accountant in relation to its obligations.
An association must pass a special resolution that:
An Application for voluntary cancellation of registration of an association (form A8) must be completed and lodged with Fair Trading. The application must include:
There is no fee for an application to voluntarily cancel incorporation.
All annual summaries of financial affairs must be lodged for the last 3 financial years before the application can proceed.
If it is not possible to provide full or partial annual summaries of financial affairs, a statutory declaration, verified by a committee member and witnessed by a Justice of the Peace, must be provided, outlining the reasons for being unable to provide the information.
If the last annual summary of financial affairs lodged reported any assets or liabilities, a statement of income and expenditure from that financial year to the closure of operations, together with evidence that the bank account has been closed, will be required.
The association distributes its assets in accordance with the passed special resolution, once approved by Fair Trading.
Generally the Associations Incorporation Act 2009 (the Act) prohibits the distribution of assets to any member or former member.
If a government department or public authority has provided assets, such as grant funding, the association must return the remaining portion to that agency or a body nominated by the agency.
Once the association meets all its requirements, the association's registration may be cancelled. A notice of that action will be published in the NSW Gazette.
The lodging party will also be notified of the cancellation.
The Act and the Associations Incorporation Regulation 2016 requires associations to keep their financial records for at least 5 years.
There is no specified period for which the association’s other records must be kept after the association’s registration is cancelled.
For more information on association records, visit the Association records page on the Fair Trading website.
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