Incorporated association rules in Queensland change, with more to follow – How is your organisation impacted? – Corporate and Company Law

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:




2. 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.

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

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.