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Incorporated Associations

Constitution / rules

Constitution
Model rules
How are the rules or name of an association changed?
What happens if the association fails to comply with its rules?

 

 

Constitution

All incorporated associations must have a constitution. This written set of rules which can outline the association’s operations, including membership, how the committee works and how meetings run.  You may either use the model rules or write your own rules

The rules become effective once the association is incorporated.

The office does not provide legal advice regarding the rules of an incorporated association and does not inspect rules lodged by associations to ensure compliance with the Act.

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Model rules

The model rules are a standard set of rules that an incorporated association can use instead of writing their own. If you make any changes to the model rules, they become the association’s own rules rather than the model rules.

If your association plans to use the model rules, there are minimum modifications to be completed. The minimum modification are the insertions to the rules, 1, 3, 5(12), 23(1)(b) and 30(1).

If something is not covered in your own rules, you need to refer to the model rules.

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How are the rules or name of an association changed?

The rules or name of an incorporated association may be changed by way of a special resolution. When considering changes to the rules care needs to be taken to ensure the alterations are consistent with the Act and other rules of the association.

Section 23 of the Act provides that a special resolution is one which is passed by not less than three-quarters of such members who are present at a general meeting of which notice specifying the intention to propose the special resolution was given in accordance with the association's rules. Accordingly, proxy voting is not possible for special resolutions.

Within one month after the passing of the special resolution altering the rules or name, the public officer of an incorporated association must lodge a notice of special resolution with Consumer Affairs.

The alteration to the rules or name takes effect when the notice is properly lodged with Consumer Affairs, the public officer will be notified when the special resolution has been registered. Once the public officer has received notification the association may use the new rules or name.

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What happens if the association fails to comply with its rules?

The rules of an association bind the association and its members in the same way as a contract and each member agrees to observe all of the provisions of the rules.

A breach of the rules means that there may be an action that an individual member may take in respect of that breach. Alternatively, the members may deal with any breach of the rules under the rules of the association.

In most cases, Consumer Affairs does not have the authority under the Act to investigate or to intervene if a dispute arises as a result of an alleged breach of an association’s rules. For further information, concerning the handling of disputes see the information under disputes.

 

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