Have you ever noticed these numbers, A0040475D, on the Koolie Club of Australia letterhead, this forum or the newsletter? Or the fact that on these documents and any other official club documents the club’s name is Koolie Club of Australia Inc. Ever wondered what they mean?
For the unintiated, Inc. stands for “Incorporated” and those numbers are our registration number with Corporate Affairs. Corporate Affairs is a governmental body that among other activities, serves as a watchdog over incorporated companies, clubs and associations which ensures that their practices and operations are ethical and law abiding. The Corporate Affairs steps in when an organisation is mismanaged or engages in questionable or even illegal practices. Its authority allows it to oversee its licensed members' management. It has in recorded instances, step in and taken over control of ill-performing organizations or clubs and implement the proper governance. This sort of sanction is not lifted until the subject is back on the right track or wound up! Legal proceedings and indictments are issued when the circumstance demand such actions.
Incorporation is only granted to clubs and associations that meet specific criteria - such as its legitimate charter and establishment, its operations, along with guidelines that are legally enforceable. Such a licensed operation has a legal constitution which has to be submitted to Corporate Affairs for approval. This also includes the required accountability for a yearly report of sound financial health to Corporate Affairs in the organisation's scope of activities.
Mandates include annual meeting and election for committee members if more than the number required nominate. At these annual meetings, annual reports are published on ledgered items such as income and expenditure, assets and liabilities of the club.
An incorporated association is legally bound to maintain adequate and accurate accounting records of the financial transactions of the incorporated association. Each club or association must also have in place a legal grievance procedure.
Two interesting paragraphs in the act governing incorporation are:(1) A member or former member of the committee of an incorporated association must not knowingly or recklessly make improper use of information acquired by virtue of his or her position in the incorporated association so as to gain, directly or indirectly, any pecuniary benefit or material advantage for himself or herself or any other person, or so as to cause a detriment to the incorporated association.
Penalty: 60 penalty units.
(2) A member of the committee of an incorporated association must not knowingly or recklessly make improper use of his or her position in the incorporated association so as to gain, directly or indirectly, any pecuniary benefit or material advantage for himself or herself or any other person or so as to cause detriment to the incorporated association.
Penalty: 60 penalty units.
All of this is to protect you as a member of an incorporated club.
Probably the most simple, but alarming, reason to make sure any club or association you are considering becoming a member of is incorporated is that: as a member of a club not incorporated you are liable for all debts, dealings, contracts etc entered into by the club's management, and costs of winding up a club, equally with all other members.
Consider the consequences if disaster should strike and perhaps injuries occur. In our modern society the first thing (disregarding any criminal charges) to happen is someone would commence litigation and if the unincorporated club was also uninsured the liability placed on members could just be horrendous. Incorporation means that the club is an entity of its own and any such legal dealings do not include members as being liable.
Fortunately the Koolie Club of Australia Inc. is insured and the licensure A0049475D appears on our newsletter etc for a good reason. Just like any important business dealings we conduct, it behooves us to be well informed and educated on such matters of participation and association.
Ask yourself this important question whenever you are about to engage a membership in any organisation in the world - Is the club I am joining able to provide me the necessary legal protection while simultaneously ensuring or helping to preserve my proper rights as a consumer?
If you are interested in more details, please feel free to contact me with confidence.
Thank you.
Terrific way to protect the members great work committee well done.