An Incorporated Association is a Club or Community Group, operating not-for-profit, whose members have chosen to give their association a formal legal structure. It can be recognised by the abbreviation “Inc.” after its name.
If a club is incorporated, it becomes a ‘legal entity’ that continues even when the management or members change. It can enter into contracts, buy and sell property, accept gifts and donations, and hold a bank account or invest and borrow money, all in its own name. An incorporated association can also sue or be sued. Without incorporation, the club’s assets (bank account, equipment and property, etc) are all owned by individuals who can depart at any time taking the assets with them.
Most importantly, an Incorporated Club can take out public liability insurance with greater ease. As car club events normally involve motoring, public liability insurance is very important. Without it, both members and office bearers can be personally liable for any accidents that can occur during club events.
Regardless of the legal entity issue, incorporation of a club provides many safeguards for its members. As far as management of the club goes, each year at the club’s Annual General Meeting (AGM) all positions on the Committee are declared vacant, and elections are held for all these positions. The club is therefore a democracy, with each ordinary member entitled to vote and take part in club decisions.
In an incorporated club, the club’s finances are in general open to all the members. At the end of each financial year the Treasurer must prepare the club’s financial statements and present them to the members at the AGM. The club’s annual financial statements must then be submitted to the Registrar of Incorporated Associations.
Some of the rights of the members of an incorporated club include the right to vote, to submit items for consideration, and to receive notice of general meetings. Members are also entitled to inspect the club’s constitution, register of members, minutes of meetings and, in general, the club’s financial records. There are also rules for disciplinary actions and dispute mediation.
All the above rules are contained within the club’s constitution, which is a written set of rules which must meet certain mandatory requirements contained in the relevant Government Act. In most States of Australia, a set of “Model Rules” is available to save the club the time and expense of drafting its own rules. The vast majority of clubs use the model rules.
In summary, the incorporation of a club is a good indication that the club is run responsibly and in the interest of the members. This may not always be true, but the constitution ensures that the members have the tools to resolve any issues. Alternately, there is nothing to say an un-incorporated club is not run responsibly, but without a set of rules there is no way to guarantee the current and ongoing club management responsibility.
Incorporation is the best measure we have to assess a club’s suitability as a Club to join and enjoy.
2 Responses
It is also the Incorporated Clubs that run the Nationals each year, the club in that state hosts the Nationals and all the other Incorporated Clubs contribute by sponsoring trophies.
So if your club is not holding the Nationals it is still contributing to the Nationals each year, and as members of those Incorporated Clubs we not only support the Nationals we get to attend the Nationals.
There is a lot of work required to run the Nationals, and the host Club must put a lot of money up front. All the Inc. Clubs are involved in putting money up front each year to help keep the entry fees as low as possible.
It is only fair, as Rob says, that the Nationals are only open to members of the Inc. Clubs. It’s easy, if you want to enter – join one of the Clubs. You’ll not only get to enter the Nationals, but have plenty of good times throughout the yera.