Malcolm Rivera
A constitution for an association fair trading is a contract between an association and its members, outlining how the association will be run and managed, including how decisions will be made. It is a set of rules that govern the association and its members, who agree to abide by its provisions. The constitution must address specific matters, including membership qualifications, requirements, and liabilities, as well as procedures for dispute resolution and inspection of books and documents. Associations have the flexibility to adopt a Model constitution, modify it, or create their own, which is recorded in a public register. Changes to the constitution are effective when registered by Fair Trading, and associations must apply within 28 days of passing a special resolution. Fair Trading provides information and forms for associations to follow, but it cannot provide legal advice.
| Characteristics | Values |
|---|---|
| Contract | Between the association and its members |
| Purpose | To govern how the association is run |
| Membership | Qualifications, requirements, register, fees, liabilities |
| Flexibility | Associations can establish a constitution that suits their needs |
| Voting | Circumstances, eligibility, provisions for postal/electronic ballots, proxy voting |
| Amendments | Changes must be registered within 28 days of a special resolution being passed |
| Inspection | Procedures for inspection of books and documents by members |
| Dispute resolution | Internal dispute resolution process or seek external advice |
| Minimum members | 5 |
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What You'll Learn
Membership qualifications, requirements, and liabilities
A constitution is a contract between an association and its members, outlining the provisions that both parties agree to adhere to. It is a set of rules that govern how the association runs. Membership qualifications, requirements, and liabilities are integral aspects of an association's constitution.
Membership Qualifications
The constitution must specify any qualifications or eligibility criteria for membership. It should outline the requirements that individuals must meet to become members of the association. These qualifications may include factors such as age, payment of entrance fees or subscriptions, and adherence to the association's values or purposes. The constitution may also outline different categories of membership, such as financial and non-financial members, and their respective rights and privileges.
Membership Requirements
The constitution should detail the process of becoming a member, including the application and approval procedures. It should specify how new members may join the association and the circumstances under which membership ceases. This includes outlining the association's power to terminate membership and the rights of members in such cases. The constitution may also address the inclusion of other incorporated bodies or affiliated members.
Members' Liabilities
The constitution must address members' liabilities towards the association's debts and financial obligations. It should outline the financial responsibilities of members, if any, and clarify whether members are liable for the association's debts or financial liabilities. Additionally, the constitution may detail the rights of members regarding the association's assets and the control or usage of these assets.
Amendments and Disputes
It is important to note that an association can choose to adopt the Model Constitution or create its own. If the association adopts the Model Constitution, it must be registered with the relevant authority, such as the Office of Fair Trading, and any changes to the constitution must also be registered. Members should have access to a copy of the constitution to understand their rights and responsibilities. In the event of a dispute or breach of the constitution, members can utilise the internal dispute resolution process outlined in the constitution or seek external advice.
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Register of members
A constitution is a contract between an association and its members, outlining the provisions that the members agree to adhere to. Every incorporated association must have a constitution, which can be either a Model constitution or one that is unique to the association. The Model constitution is a standard set of rules that an association can choose to adopt.
The constitution of an association should include a register of members. This register must be established and maintained by the association's secretary, in written or electronic form. It should be kept at the association's main premises or official address and be available for inspection by any member, free of charge. The Model constitution limits the purposes for which information in the register may be used and allows members to request that their information (excluding their name) is not made available for inspection.
The constitution should also specify any qualifications for membership and outline how new members may join. It should set out the circumstances under which membership ceases and detail members' rights and privileges, including any restrictions on voting rights. For example, in some associations, only paid members may vote on issues affecting policy and procedure. The constitution must also outline the procedure for nominating persons for election or appointment to the management committee.
In addition to the register of members, the constitution should address other matters such as membership fees, members' liabilities towards the association's debts and liabilities, and the procedures for the inspection of books and documents. It should also specify the financial year of the association and outline the process for winding up the association if necessary.
It is important to note that an association's constitution may need to be amended over time. Changes to the constitution typically require a special resolution or a vote by the members, and the updated constitution must be registered with the relevant authority, such as the Office of Fair Trading.
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Fees and subscriptions
A constitution is a contract between an association and its members, outlining the provisions that the members agree to adhere to. It is a set of rules that govern how the association is run.
The fees and subscriptions section of an association's constitution is an important aspect that outlines the financial obligations of its members. This section typically covers any entrance fees, annual fees, subscriptions, and other amounts that members are expected to pay.
For example, the constitution might specify an annual fee of a certain amount, due on a specific date each year, which will be reviewed at each Annual General Meeting (AGM). This fee will typically cover the administration and running costs of the association. The constitution may also outline a voluntary donation policy, allowing members to contribute additional funds if they wish.
In some cases, the constitution may also detail the procedures for collecting and managing these funds, such as requiring the establishment of a dedicated bank account in the association's name. It may also outline any consequences for members who fail to pay their fees, such as the withdrawal of membership privileges or voting rights.
Additionally, the constitution should address the financial year of the association and any liabilities that members may have towards the debts and liabilities of the association. This includes outlining the procedures for winding up the association and distributing any remaining assets among members in proportion to their years of paid subscriptions.
When it comes to accessing the constitution and other association documents, the secretary is usually responsible for providing copies to members upon request. The secretary may charge reasonable costs, such as photocopying fees, to the requesting member.
It is worth noting that the constitution should also outline the procedures for amending it, including any requirements for special resolutions, voting processes, and registration of changes with the relevant authorities, such as the Office of Fair Trading.
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Dispute resolution
A constitution for an association outlines the rules and regulations that govern the group's operations and the relationship between its members. It is a contract between the association and its members, who agree to abide by its provisions. While associations can adopt a Model Constitution, they may also create their own, which must comply with the relevant Act.
Disputes within associations are inevitable, and having an internal dispute resolution procedure is essential for quick and fair conflict management. The constitution should outline a mechanism for resolving disputes between members and between members and the association. This could include appointing a member to handle complaints, implementing a system to record and track grievances, and establishing an appeals process.
If an informal meeting fails to resolve the issue, a special general meeting can be called to address the dispute. Associations are encouraged to resolve conflicts internally, but if internal avenues are exhausted, external options are available. Fair Trading, for instance, maintains a public register of incorporated associations and ensures compliance with the Act, but it cannot typically intervene in internal disputes.
In such cases, individuals may seek external advice or legal services, such as those offered by Justice Connect, or use an alternative dispute resolution (ADR) service. If internal and external mediation fails, the Supreme Court may be the final option to make orders about how the association is run.
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Voting eligibility
The constitution of an incorporated association is a contract between the association and its members, outlining the provisions that both parties agree to adhere to. Every incorporated association must have a constitution, which can be either the Model Constitution or one designed by the association itself. The Model Constitution is a standard set of rules that an association can choose to adopt, and it covers all matters outlined in Schedule 1 of the Associations Incorporation Act 2009 (the Act).
The constitution should specify the eligibility requirements for voting. It should also outline the kinds of resolutions that may be voted on by postal or electronic ballot, and whether members are entitled to vote by proxy at general meetings. The constitution must also set out if non-financial members can vote at the annual general meeting. For example, where the Model Constitution applies, a member is not entitled to vote at any general meeting unless all money due has been paid.
The constitution should also set out provisions relating to the election or appointment of members of the committee, including the procedure for nominating persons for election or appointment to the management committee. The constitution may allow other incorporated bodies, such as incorporated associations, cooperatives, or companies, to be members of the association or for the association to have affiliated members.
It is important to note that persons under the age of 18 can be members of an association, but they cannot be committee members as per the Associations Incorporation Act 2009. The constitution should clearly detail the rights and privileges of minor members, including any restrictions on their voting rights.
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Frequently asked questions
A constitution for an association fair trading is a contract between the association and its members, outlining how the association will be run and managed, including how decisions will be made.
The constitution must address the matters referred to in Schedule 1 of the Associations Incorporation Act 2009, including membership qualifications and requirements, a register of members, fees and subscriptions, and members' liabilities. Other matters such as the procedures for the inspection of books and documents, the association's financial year, and the process for winding up the association should also be included.
Yes, an association can make changes to its constitution by adopting a new constitution that includes the desired alterations. The association must apply to register these changes within 28 days of the special resolution being passed. The new constitution will take effect once it is registered by Fair Trading.
