However, in 2010 transfer of incorporation provisions were introduced, and as such, the transfer of undertaking provisions in the current Act are no longer required as the Act’s transfer of incorporation provisions are sufficient to deal with future transfer requests. Incorporated associations wishing to change legislative schemes can now tailormade legislative provisions to their situation, rather than having to request the Commissioner exercise the discretion under the Act to direct the incorporated association’s undertaking be transferred to another body corporate. It should be noted that the removal of the transfer of undertaking provisions (and hence external regulation of a transfer of an association’s undertaking) will not impact on the ability of an incorporated association to enter into contracts or acquire, hold, deal with, and dispose of any real or personal property in pursuing its objects or purposes. That is, an association will continue to have the capacity to transfer part or whole of its undertaking without having to rely on the Act. However, associations will need to take into account the potential tax and other legal and financial issues in making that decision e.g. transfer duty. PART 7 - AMALGAMATION What is the process that must be followed if two or more associations want to amalgamate? Part 7 of the new law enables two or more associations that wish to amalgamate to apply to the Commissioner for approval to incorporate the new body. The proposed amalgamation must be consistent with the rules of each existing association and cannot be made unless- the terms of the amalgamation; and the name and objects or purposes of the new body; and the rules of the new body, have been approved by a special resolution of each of the existing incorporated associations concerned. PART 8 STATUTORY MANAGEMENT OF INCORPORATED ASSOCIATION – Part 8 of the new law provides for the Commissioner to apply to the State Administrative Tribunal (the SAT) for a statutory manager to be appointed to an association. What happens when a statutory manager is appointed? On the appointment of a statutory manager the members of the management committee are suspended from office and the statutory manager has the functions of the management committee, including the committee’s of delegation (section 111). Except as provided by section 114 (i.e. by order of the State Administrative Tribunal or by appointment of the Commissioner as part of the revocation of the appointment of the statutory manager), a member of the management committee of an incorporated association cannot be appointed or elected so long as the statutory manager is in office in respect of the association. When would a statutory manager be appointed to an association? Is this a long-term or a short-term initiative?
However, in 2010 transfer of incorporation provisions were introduced, and as such, the transfer of undertaking provisions in the current Act are no longer required as the Act’s transfer of incorporation provisions are sufficient to deal with future transfer requests. Incorporated associations wishing to change legislative schemes can now tailormade legislative provisions to their situation, rather than having to request the Commissioner exercise the discretion under the Act to direct the incorporated association’s undertaking be transferred to another body corporate. It should be noted that the removal of the transfer of undertaking provisions (and hence external regulation of a transfer of an association’s undertaking) will not impact on the ability of an incorporated association to enter into contracts or acquire, hold, deal with, and dispose of any real or personal property in pursuing its objects or purposes. That is, an association will continue to have the capacity to transfer part or whole of its undertaking without having to rely on the Act. However, associations will need to take into account the potential tax and other legal and financial issues in making that decision e.g. transfer duty. PART 7 - AMALGAMATION What is the process that must be followed if two or more associations want to amalgamate? Part 7 of the new law enables two or more associations that wish to amalgamate to apply to the Commissioner for approval to incorporate the new body. The proposed amalgamation must be consistent with the rules of each existing association and cannot be made unless- the terms of the amalgamation; and the name and objects or purposes of the new body; and the rules of the new body, have been approved by a special resolution of each of the existing incorporated associations concerned. PART 8 – STATUTORY MANAGEMENT OF INCORPORATED ASSOCIATION Part 8 of the new law provides for the Commissioner to apply to the State Administrative Tribunal (the SAT) for a statutory manager to be appointed to an association. What happens when a statutory manager is appointed? On the appointment of a statutory manager the members of the management committee are suspended from office and the statutory manager has the functions of the management committee, including the committee’s of delegation (section 111). Except as provided by section 114 (i.e. by order of the State Administrative Tribunal or by appointment of the Commissioner as part of the revocation of the appointment of the statutory manager), a member of the management committee of an incorporated association cannot be appointed or elected so long as the statutory manager is in office in respect of the association. When would a statutory manager be appointed to an association? Is this a long-term or a short-term initiative?
assocnewlaws16faq.docx