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Incorporation

Incorporation

What is incorporation?

Incorporation is the process of making your club or organisation a legal association. Even though there is no legal necessity for a voluntary organisation such as a tennis club to become incorporated, it is recommended.

Why is it a good idea?

Incorporation enables your Club to:

  • Apply for government grants
  • Be eligible for the National Court Rebate Scheme
  • Protect individual members of an organisation from legal liability
  • Enter into enforceable contracts
  • Enter into lease agreements

How does the incorporation process work?

The details provided below are from an extract obtained from: Consumer Affairs-incorporation

Steps to incorporation:

  1. Call a meeting of the members to decide who will fill the roles of the Committee (Secretary, Public Officer, President, Treasurer)
  2. Vote upon and approve the association’s name
  3. Approve the constitution/rules – associations are governed by a set of rules.  They can create their own or adopt the Model Rules
  4. Complete and lodge the Application for Incorporation
  5. Lodge the form together with the constitution/rules and the fee
  6. Forms can be lodged:

Constitution

It is essential that your club has a Constitution. This provides a basic framework to assist in the daily running of your club, and offers members and club committees with some certainty about roles, responsibilities, rules, and decision-making authority.

What, Why & How?

  • The Constitution is a set of rules or guidelines outlining how the association and its members should operate
  • Consumer Affairs and Fair Trading provides a template constitution, known as the Model Rules
  • Associations can either adopt or amend the Model Rules
  • Amending an association’s constitution is done through the passing of a Special Resolution
  • This is where the association advertises its intent to make changes to its constitution and then holds a Special General Meeting to vote on the changes.  If three-quarters of the members present at the meeting vote in favour, the changes are passed
  • The Public Officer is required to notify Consumer Affairs and Fair Trading of the amendments within one month by lodging a Notice of Special Resolution, and attaching a copy of the changes
  • Members are expected to abide by the association’s constitution
  • Consumer Affairs and Fair Trading does not have the authority to investigate a breach of an association’s constitution, or any dispute that may arise between members
  • Any dispute or issues should be dealt with internally or by seeking independent legal advice.

About Constitutions (includes a sample)

For useful additional information on incorporation and constitutions, see Sport & Recreation Tasmania