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cooperatives_and_associations
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/Factsheet_print/Cooperatives_and_associations/_Running_an_association.pdf
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Standard fact sheet.
/Factsheet_largeprint/Cooperatives_and_associations/_Running_an_association.pdf
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Large print fact sheet.

Running an association 

Incorporated associations 

Incorporation benefits an association and its members. However, it also brings a number of responsibilities.

Committee members and the public officer are primarily responsible for ensuring an incorporated association complies with its statutory and reporting obligations.

Failure to comply with these obligations may lead to the issue of a penalty notice, prosecution, or in some instances, cancellation of the association's incorporation.

Confirming an association's status 

A free online register provides key information about incorporated associations registered in NSW, including an entity’s incorporation name and number, date of incorporation and registration status. Visit the  NSW incorporated associations online register on the Fair Trading website.

For more detailed information, contact Registry Services on 1800 502 042 or email registryinquiries@finance.nsw.gov.au for assistance. 

In addition, searching the Organisation and Business Names search facility on the Australian Securities and Investments Commission website at connectonline.asic.gov.au.

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Minimum number of members 

An incorporated association must have a minimum of 5 members at all times. An association’s registration may be cancelled if it has fewer than 5 members.

There is no maximum limit for the number of members in an association.

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Management of associations 

An association must establish a committee to manage its affairs. The committee must include 3 or more members. All committee members must be over 18 years of age and at least 3 of whom reside in Australia. The public officer may be a member of the committee.

Members of the management committee must carry out their functions with due care and diligence for the benefit, as far as practicable, of the association. They must disclose any interest in a matter that conflicts with their ability to perform their duties. They must not use their position or information acquired as a committee member dishonestly.

A former committee member must ensure that all documents of the association in their possession are delivered to the public officer within 14 days of vacating office.

For more information on the role and responsibilities of the management committee, visit the Management committee page on the Fair Trading website.

Refer to sections 28 and 31 to 33 of the Associations Incorporation Act 2009 (the Act) for more information.

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Commercial activities and monetary gain 

An association must not secure a monetary gain for its members. Any profits made by an association should be used to further the objects for which the association was established.

Organisations operating as commercial enterprises are not eligible for incorporation.

For more information on restrictions on providing monetary gain to members or on commercial activities, visit the Commercial activities and monetary gain page on the Fair Trading website.

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Association records 

The committee must ensure the association keeps and maintains the records required by the Act or otherwise required for the efficient running of the association.

For information on the registers and other documents that should be kept and maintained by an association, visit the Association records page on the Fair Trading website.

Refer to sections 29, 31 and 50 of the Act.

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Public officer 

An association's committee must appoint a public officer who is over 18 years of age and a resident of New South Wales.

The public officer is, by virtue of that office, an authorised signatory for the association.

The committee must fill the office of public officer within 28 days of a vacancy. The new public officer must advise Fair Trading of the details of the appointment within 28 days of taking office.

A former public officer must ensure that all documents of the association in their possession are delivered to a committee member within 14 days of vacating office.

For more information on the role of the public officer, visit the Public officer page on the Fair Trading website.

Refer to sections 34 to 36 of the Act.

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Official address 

The official address must be an address in NSW at which the public officer can generally be found, and at which documents can be served on the association by post.

The official address cannot be a post office box.

The public officer must advise Fair Trading of a change of official address within 28 days after the current address becomes obsolete or unusable.

Refer to sections 6 and 13 of the Act.

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Annual general meetings 

The association’s annual general meeting (AGM) is to take place within 6 months of the close of the association's financial year or in a timeframe allowed by Fair Trading.

A newly incorporated association must hold its first AGM within 18 months of registration.

Associations are required to submit their financial statements for the previous financial year to the AGM. The nature of the financial statements submitted to the AGM must be in accordance with the category of association, either Tier 1 or Tier 2. For more information on financial reporting requirements, visit the Financial reporting requirements page on the Fair Trading website.

Refer to sections 37, 44 and 48 of the Act.

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Financial reporting 

The Act divides associations into two tiers for reporting purposes.

Larger, or Tier 1 associations are those whose gross receipts are more than $250,000 or current assets are more than $500,000. Tier 1 associations are required to submit audited financial statements each year to the members at the AGM.

Smaller, or Tier 2 associations are those whose gross receipts are less than $250,000 or current assets are less than $500,000. Tier 2 associations are required to submit a summary of their financial affairs to the AGM.

Associations must lodge annual financial summaries in the approved form with Fair Trading within 1 month after the AGM and no later than 7 months after the end of the association’s financial year.

More information on financial reporting requirements is available on the Financial reporting requirements page on the Fair Trading website.

Refer to sections 42 to 49 of the Act.

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General obligations 

An association's full name (including the word 'Incorporated' or the abbreviation 'Inc') must appear in legible characters on any letter, statement, invoice, notice, publication including website, order for goods or services, or receipt in connection with its activities.

A person must provide Fair Trading with information or documents concerning the affairs of an association when required to do so.

Refer to sections 41 and 85 of the Act.

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Charitable fundraising 

Many organisations conduct fundraising appeals in order to finance their charitable activities.

If you have any enquiries about charitable fundraising under the Charitable Fundraising Act 1991 in NSW, call Fair Trading on 02 9895 0011 or email charity.inquiries@finance.nsw.gov.au

 

Do we have obligations under any other legislation? 

Associations must comply with any relevant State and Commonwealth legislation that applies to its operations.

Visit the following organisations’ websites for more information:

 

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Need more information? 

Contact Registry Services
PO Box 22
Bathurst NSW 2795
Ph: 02 6333 1400
FreeCall: 1800 502 042
Email: registryinquiries@finance.nsw.gov.au

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