Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.

Overview of Bill

The object of this Bill is to amend the Associations Incorporation Act 1984 (the
Principal Act) so as to facilitate the cancellation of the incorporation of incorporated
associations that have become defunct.

Outline of provisions

Clause 1 sets out the name (also called the short title) of the proposed Act.

Clause 2 provides for the commencement of the proposed Act on the date of assent.

Clause 3 is a formal provision that gives effect to the amendments to the Principal
Act set out in Schedule 1.

Clause 4 is a formal provision that gives effect to the amendments to the Acts set out
in Schedule 2.

Clause 5 provides for the repeal of the proposed Act after the proposed Act
commences. Once the proposed Act commences the proposed Act will be spent.

Section 30 of the Interpretation Act 1987 provides that the repeal of an amending Act
does not affect the amendments made by that Act.

Schedule 1 Amendment of Associations
Incorporation Act 1984
Schedule 1 [1] replaces section 54 of the Principal Act with proposed sections 54 and
54A. References in those sections to the Director-General are, by administrative
changes order, required to be construed as references to the Commissioner for Fair
Trading, Department of Commerce.

Proposed section 54 provides that the Director-General may cancel the
incorporation of an incorporated association if satisfied as to certain matters. These
matters include the matters as to which the Director-General must currently be
satisfied under the existing section 54, and also includes 4 further grounds. The
additional grounds are as follows:

(a) that the association has failed to lodge financial statements for the last 3 years,

(b) that the association has failed to comply with a direction to change its name,

(c) that the association no longer has at least 5 members,

(d) that the association no longer has a public officer who is resident in the State.

Before cancelling an association’s incorporation, the Director-General must notify
the association of his or her intention to do so, must give the association and its
members at least 28 days in which to respond to the notice and must give due
consideration to any responses that are made.

Proposed section 54A preserves any existing liability of all former officers of an
association whose incorporation has been cancelled under proposed section 54, and
permits the Director-General to reinstate the association’s incorporation if satisfied
that the incorporation should not have been cancelled under that section. Under the
existing section 54, liability is preserved only in relation to persons who were officers
at the time of cancellation.

The procedures set out in proposed sections 54 and 54A do not otherwise differ in
any material respect from the procedures set out in the existing section 54.

Schedule 1 [2] amends section 55A of the Principal Act so as to ensure that, when
an association’s incorporation is cancelled on its own application, the liability of all
former officers, and not just those persons who were officers at the time of
cancellation, is preserved.

Schedule 1 [3] amends clause 1 (1) of Schedule 3 to the Principal Act (Savings and
transitional provisions) so as to enable the Governor to make regulations of a savings
or transitional nature consequent on the enactment of the proposed Act.

Schedule 1 [4] inserts proposed Part 3 into Schedule 3 to the Principal Act. The new
Part contains a provision that disapplies the amendments made by the proposed Act
from any cancellation procedures arising from a notice issued before the
commencement of the proposed Act under existing section 14 (1A) (a change of
name direction) or existing section 54 (1) (the current show cause provision).

Schedule 2 Amendment of other Acts
Schedule 2.1 and 2.2 amend section 204B of the Police Act 1990 and section 12 of
the Sheriff Act 2005, respectively, to make amendments consequential on the
amendment made by Schedule 1 [1].

Note: If this Bill is not modified, these Explanatory Notes would reflect the Bill as passed in the House. If the Bill has been amended by Committee, these Explanatory Notes may not necessarily reflect the Bill as passed.

 

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