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The committee

The Committee are:

Those persons who have the power under the rules to manage the affairs of the association are the committee of the association for the purposes of the Act.

This is an important provision because people who are defined as committee members have special responsibilities under the Act, both as individuals and as part of the group.

Individual committee members’ responsibilities

Conflict of interest

Committee members are required to disclose any direct or indirect financial interest they may have in any contract, or proposed contract, entered into or being considered by the committee. Committee members who have either a direct or indirect financial interest in any contract also must not take part in any deliberations on the contract, or vote. Failure to comply with either of these provisions is an offence which carries a maximum penalty of a fine of $500.

Complying with the Act

If a member of a committee of an incorporated association fails to take all reasonable steps to ensure the association complies with its obligations under the Act, the member commits an offence and is liable to a maximum fine of $500. This personal obligation of committee members is a very important one. It means that all committee members MUST do what is reasonable to make sure that the obligations on the association under the Act are complied with.

The duties of individual committee members described in an association’s rules may assist them
in working out what are the reasonable steps for them to take.

Management structure

It is up to your association to choose how it allocates the power to manage its affairs. Remember
whoever is allocated this power under the rules will be “committee members” for the purposes of
the Act and have the special responsibilities referred to above.

Generally the rules provide for members of the association to elect a committee at the annual general meeting and for the management of the affairs of the association to be the responsibility
of that committee. Also, the rules generally include specific office-holders such as the chairperson, secretary and treasurer, although the positions may have different titles, for example, president instead of chairperson. For an idea of the duties which generally go with these positions, refer to the Department’s model rules.

Committee responsibilities

The overall role of the committee is to manage an association in accordance with the purposes or
objects of the association as stated in its rules. In undertaking this role, the committee must fulfil a
number of legal responsibilities which include making sure that:

  • the association complies with its obligations under the Act and in particular under Part V,
    which includes:
    • sections 21 & 22 which require disclosure by committee members of any pecuniary (financial) interest in contracts being considered by the committee, and abstaining from any deliberations and vote;
    • section 23 which requires that annual general meetings be convened within 4 months of the end of an association's financial year;
    • section 24 which defines special resolutions (required to change the rules or
      voluntarily wind up) to include requirements of notice to members, a general meeting and a vote of at least three-quarters of those entitled to vote, who are present or represented by proxy, if proxies are allowed;
    • section 25 which defines the standards for maintaining financial records;
    • section 26 which requires that accounts showing the financial position of the
      association be submitted to members at the annual general meeting;
    • section 27 which requires the maintenance of a register of members and their
      residential or postal addresses, and access by any member to inspect and copy;
    • section 28 which requires the maintenance of up to date rules, and access by any member to inspect and copy; and
    • section 29 which requires the maintenance of a list of office bearers and trustees and their residential or postal addresses, and access by any member to inspect and copy.
  • the association complies with its rules and any funding agreements or other contracts;
  • the association complies with its legal responsibilities to any employees, such as complying with employment awards or agreements, paying tax and superannuation and providing a safe working environment;
  • the association complies with it legal responsibilities to members, volunteers and any clients or customers who may use the association’s services;
  • an assessment has been made of whether insurance cover is required and to what extent;
    and
  • any other relevant laws or regulations are complied with.

Specific financial responsibilities include making sure that:

  • there is compliance with requirements under the Act in relation to financial accounting and
    reporting to members (go to Meetings and Record keeping and related
    items    );
  • the association can pay all its expenses (it may assist to develop a budget annually);
    the conditions of any funding agreement are followed;
  • the accounts are audited if this is required by the association’s members, rules or funding
    agreements; and
  • good risk management procedures are in place. (For example, a requirement that two
    authorised signatories sign off on any association cheque and that another member or
    employee completes cheque account reconciliations can be a good method for minimising
    risk.)

Depending on the size and nature of your association other areas of responsibility may include the management of staff, the development and implementation of policies and procedures; and the provision of quality services to members or clients.