Incorporated Associations

Deregistering

There are two methods available to deregister an Association under the Association Incorporation Act 1964.

They are:

wind up under Section 32 or
request that the Commissioner cancel Incorporation under Section 34

Winding up an Incorporated Association
Cancellation of Incorporation of an Association
Documents to lodge for cancellation of an Incorporated Association
Who should sign and lodge the Resolution for Deregistration of an Association?
What happens after cancellation is approved?
Appeal against cancellation of incorporation

Winding up an Incorporated Association

Under Section 32 of the Act you have the option of winding up through the courts. This step is generally taken by Incorporated Bodies that are insolvent.

Upon the winding up of an incorporated association, a resolution relating to the distribution of the surplus assets of the association should be passed by at least two-thirds of the members of the association. The court will then make an order for the distribution of the assets in accordance with the resolution.

If the association has not passed a resolution with regards to the distribution of assets the court will make an order for the distribution of those assets.

Any assets of the incorporated association remaining on the winding up of the association after payment of debts and liabilities of the association and the costs, charges and expenses of the winding up will be distributed by order of the court, having regards to the objects and purposes of the association.

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Cancellation of Incorporation of an Association

Section 34A of the Act allows for organisations to request cancellation of their incorporation through a special resolution. This resolution must be approved by the Commissioner and is only available in the following circumstances.

the motion is passed at an annual general meeting or special general meeting
the association is not carrying on business
the association assets are worth less than $1000
the association has paid all fees and lodged all the required documents with the Consumer Affairs up until the date of cancellation

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Documents to lodge for cancellation of an Incorporated Association

notice of special resolution for deregistration of an association
final annual return (no fee if less than 12 months) covering the period up to the date of cancellation

The notice of special resolution must indicate what is intended to happen to the assets of the association upon deregistration.

Section 33 of the Act provides the manner in which the surplus assets of an association shall be distributed.

Under no circumstances can the assets, property of cash reserves of an incorporated association be distributed to members or former members.

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Who should sign and lodge the Resolution for Deregistration of an Association?

The public officer of the association must sign the notice of special resolution. If the public officer differs from that registered with the office, the form may be forwarded to the recorded public officer to be signed. This can delay the cancellation process.

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What happens after cancellation is approved?

The Commissioner may approve the cancellation of the incorporation of the association once all documents required under the Association Incorporation Act 1964 have been received.

After approving the cancellation of incorporation notification will be sent to the association and the Commissioner will publish a notice of cancellation in the Tasmanian Government Gazette.

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Appeal against cancellation of incorporation

The public officer, creditor or member of an association which is cancelled under Section 34 may, within 3 months after cancellation appeal to a magistrate against the cancellation.

If the magistrate is satisfied that the association has not ceased to exist he/she may order that the incorporation be restored. The incorporation would then continue as if it has never been cancelled.

The determination of the magistrate on the hearing of an appeal under this section is final.