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ASSOCIATIONS INCORPORATION AND OTHER LEGISLATION AMENDMENT BILL 2006

          Queensland



Associations Incorporation
and Other Legislation
Amendment Bill 2006

 


 

 

Queensland Associations Incorporation and Other Legislation Amendment Bill 2006 Contents Page Part 1 Preliminary 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Part 2 Amendment of Associations Incorporation Act 1981 3 Act amended in pt 2 and schedule . . . . . . . . . . . . . . . . . . . . . . . . 6 4 Insertion of new s 1B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 1B Act prevails if association's rules are inconsistent with Act ................................. 6 5 Amendment of s 2 (Definitions) . . . . . . . . . . . . . . . . . . . . . . . . . . 7 6 Amendment of s 6 (Association may resolve to incorporate and adopt proposed rules) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 7 Amendment of s 12 (Chief executive to make decision about application) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 8 Amendment of s 16 (Register of incorporated associations) . . . . 9 9 Insertion of new s 16A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 16A Use of information on register . . . . . . . . . . . . . . . . . . 9 10 Amendment of s 17 (Registered office) . . . . . . . . . . . . . . . . . . . . 10 11 Amendment of s 18 (Inspecting register) . . . . . . . . . . . . . . . . . . . 10 12 Amendment of s 29 (Name of incorporated association to include `incorporated' etc.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 13 Amendment of s 32 (Name of incorporated association to appear on documents) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 14 Replacement of s 54 (Form in which rules must be kept) . . . . . . 11 54 Form in which rules must be kept. . . . . . . . . . . . . . . . 12 15 Replacement of ss 55 and 56. . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 55 Annual general meetings . . . . . . . . . . . . . . . . . . . . . . 12 56 Rules may allow meetings using communication technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

 


 

2 Associations Incorporation and Other Legislation Amendment Bill 2006 16 Amendment of s 57 (General meetings) . . . . . . . . . . . . . . . . . . . 13 17 Insertion of new ss 57A and 57B . . . . . . . . . . . . . . . . . . . . . . . . . 13 57A Minimum quorum for general meetings . . . . . . . . . . . 13 57B Inspection of minutes . . . . . . . . . . . . . . . . . . . . . . . . . 13 18 Replacement of pt 6, div 2 (Audits) . . . . . . . . . . . . . . . . . . . . . . . 14 Division 2 Financial reporting for incorporated associations 58 Definitions for div 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 58A Meaning of reportable financial year . . . . . . . . . . . . . 15 59 Level 1 incorporated associations and particular level 2 and 3 incorporated associations . . . . . . . . . . . 17 59A Other level 2 incorporated associations . . . . . . . . . . . 19 59B Other level 3 incorporated associations . . . . . . . . . . . 21 59C Inspection of financial documents . . . . . . . . . . . . . . . 22 59D Defence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 59E Approved persons . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 19 Amendment of s 62 (Election of management committee) . . . . . 23 20 Amendment of s 63 (Meetings of management committee). . . . . 23 21 Insertion of new s 63A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 63A Meetings by using communication technology . . . . . . 24 22 Amendment of s 66 (Management committee to ensure association has appropriate individual as secretary) . . . . . . . . . . 24 23 Replacement of s 67 (Secretary may be appointed or removed at any time). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 67 Management committee may appoint or remove secretary at any time . . . . . . . . . . . . . . . . . . . . . . . . . 24 24 Insertion of new s 69A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 69A Functions of secretary . . . . . . . . . . . . . . . . . . . . . . . . 25 25 Replacement of s 70 (Insurance) . . . . . . . . . . . . . . . . . . . . . . . . . 25 70 Public liability insurance generally . . . . . . . . . . . . . . . 25 70A Particular incorporated associations must have public liability insurance . . . . . . . . . . . . . . . . . . . . . . . 27 26 Amendment of s 91 (Declaration of applied Corporations legislation) ....................................... 27 27 Amendment of s 93 (Cancellation of incorporation) . . . . . . . . . . . 27 28 Amendment of s 113 (Who may make an appeal?) . . . . . . . . . . . 28 29 Insertion of new s 119A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 119A Chief executive may ask for information or documents ........................... 28

 


 

3 Associations Incorporation and Other Legislation Amendment Bill 2006 30 Amendment of s 126 (Evidence) . . . . . . . . . . . . . . . . . . . . . . . . . 29 31 Amendment of s 127 (Evidentiary provisions) . . . . . . . . . . . . . . . 29 32 Amendment of s 129 (Delegation) . . . . . . . . . . . . . . . . . . . . . . . . 30 33 Insertion of new s 130A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 130A Documents not in English language. . . . . . . . . . . . . . 30 34 Amendment of s 138 (Service). . . . . . . . . . . . . . . . . . . . . . . . . . . 30 35 Insertion of new pt 16, div 1 hdg . . . . . . . . . . . . . . . . . . . . . . . . . 30 36 Amendment of s 145 (Transitional provision for Audit Legislation Amendment Act 2006) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 37 Insertion of new pt 16, div 2 and schedule . . . . . . . . . . . . . . . . . . 31 Division 2 Transitional provisions for Associations Incorporation and Other Legislation Amendment Act 2006 146 Nominated address . . . . . . . . . . . . . . . . . . . . . . . . . . 31 147 Association's name. . . . . . . . . . . . . . . . . . . . . . . . . . . 31 148 Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 149 Financial reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 150 Approved persons . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Schedule Dictionary Part 3 Amendment of Classification of Computer Games and Images Act 1995 38 Act amended in pt 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 39 Amendment of s 5 (Classification of computer games by computer games classification officer) . . . . . . . . . . . . . . . . . . . . . 33 Part 4 Amendment of Classification of Publications Act 1991 40 Act amended in pt 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 41 Amendment of s 32 (Evidentiary provisions) . . . . . . . . . . . . . . . . 34 Schedule Minor amendments of Associations Incorporation Act 1981 35

 


 

 

2006 A Bill for An Act to amend the Associations Incorporation Act 1981, the Classification of Computer Games and Images Act 1995 and the Classification of Publications Act 1991

 


 

s1 6 s4 Associations Incorporation and Other Legislation Amendment Bill 2006 The Parliament of Queensland enacts-- 1 Part 1 Preliminary 2 Clause 1 Short title 3 This Act may be cited as the Associations Incorporation and 4 Other Legislation Amendment Act 2006. 5 Clause 2 Commencement 6 This Act commences on a day to be fixed by proclamation. 7 Part 2 Amendment of Associations 8 Incorporation Act 1981 9 Clause 3 Act amended in pt 2 and schedule 10 This part and the schedule amend the Associations 11 Incorporation Act 1981. 12 Clause 4 Insertion of new s 1B 13 After section 1A-- 14 insert-- 15 `1B Act prevails if association's rules are inconsistent 16 with Act 17 `To remove any doubt, it is declared that if a rule of an 18 association is inconsistent with this Act, this Act prevails to 19 the extent of the inconsistency.'. 20

 


 

s5 7 s5 Associations Incorporation and Other Legislation Amendment Bill 2006 Clause 5 Amendment of s 2 (Definitions) 1 (1) Section 2, `In this Act--'-- 2 omit, insert-- 3 `The dictionary in the schedule defines particular words used 4 in this Act.'. 5 (2) Section 2-- 6 insert-- 7 `accountant see section 58. 8 approved person see section 58. 9 auditor see section 58. 10 audit report see section 59(2)(c). 11 current assets, for part 6, division 2, see section 58. 12 end date see section 58. 13 financial document, of an incorporated association, means 14 any of the following-- 15 (a) the association's financial statement; 16 (b) the audit report mentioned in section 59(2)(c); 17 (c) the statement of an auditor, an accountant or approved 18 person mentioned in section 59A(2)(b)(ii); 19 (d) the statement of the association's president or treasurer 20 mentioned in section 59B(2)(b)(ii). 21 financial statement, for an incorporated association, means a 22 statement containing the following particulars-- 23 (a) the association's income and expenditure during the 24 financial year to which the statement relates; 25 (b) the association's assets and liabilities as at the end date 26 of the financial year to which the statement relates; 27 (c) the mortgages, charges and securities affecting the 28 association's property as at the end date of the financial 29 year to which the statement relates. 30

 


 

s6 8 s7 Associations Incorporation and Other Legislation Amendment Bill 2006 financial year, for an incorporated association, means the 12 1 month period adopted by the association as its financial year 2 in its rules. 3 level 1 incorporated association, for part 6, division 2, see 4 section 58. 5 level 2 incorporated association, for part 6, division 2, see 6 section 58. 7 level 3 incorporated association, for part 6, division 2, see 8 section 58. 9 nominated address, for an incorporated association, see 10 section 17(1). 11 reportable financial year see section 58A. 12 total revenue, for part 6, division 2, see section 58.'. 13 (3) Section 2, definitions, as amended-- 14 relocate to the schedule, as inserted by this Act. 15 Clause 6 Amendment of s 6 (Association may resolve to 16 incorporate and adopt proposed rules) 17 Section 6(1), `special resolution'-- 18 omit, insert-- 19 `resolution passed at a meeting of the association by the votes 20 of at least 3/4 of the association's members who are present 21 and entitled to vote on the resolution'. 22 Clause 7 Amendment of s 12 (Chief executive to make decision 23 about application) 24 Section 12-- 25 insert-- 26 `(2) Without limiting the grounds on which the chief executive 27 may refuse an application for incorporation, the chief 28 executive may refuse the application if the chief executive is 29 satisfied that the proposed rules of the association do not 30 comply with this Act.'. 31

 


 

s8 9 s9 Associations Incorporation and Other Legislation Amendment Bill 2006 Clause 8 Amendment of s 16 (Register of incorporated 1 associations) 2 (1) Section 16(2)(b)-- 3 omit, insert-- 4 `(b) the association's nominated address;'. 5 (2) Section 16-- 6 insert-- 7 `(3) The register must also include the copies of the association's 8 financial documents given to the chief executive under part 6, 9 division 2.'. 10 Clause 9 Insertion of new s 16A 11 After section 16-- 12 insert-- 13 `16A Use of information on register 14 `(1) A person must not-- 15 (a) use information obtained from the register of an 16 incorporated association to contact, or send material to, 17 the association or a member of the association for the 18 purpose of advertising for political, religious, charitable 19 or commercial purposes; or 20 (b) disclose information obtained from the register of an 21 incorporated association to someone else, knowing that 22 the information is likely to be used to contact, or send 23 material to, the association or a member of the 24 association for the purpose of advertising for political, 25 religious, charitable or commercial purposes. 26 27 Example for subsection (1)-- 28 putting a person's name and address on a mailing list for advertising 29 material Maximum penalty--10 penalty units. 30 `(2) Subsection (1) does not apply if the use or disclosure of the 31 information is approved by the incorporated association.'. 32

 


 

s 10 10 s 11 Associations Incorporation and Other Legislation Amendment Bill 2006 Clause 10 Amendment of s 17 (Registered office) 1 (1) Section 17, heading-- 2 omit, insert-- 3 `17 Nominated address for service'. 4 (2) Section 17(1)-- 5 omit, insert-- 6 `(1) The members of the management committee of an 7 incorporated association-- 8 (a) must ensure that the association has an address 9 nominated for the service of documents on the 10 association (a nominated address) complying with 11 subsection (2); and 12 (b) must give the chief executive written notice of the 13 nominated address in the approved form. 14 Maximum penalty for each member of the management 15 committee--5 penalty units.'. 16 (3) Section 17(2) and example, `registered office'-- 17 omit, insert-- 18 `nominated address'. 19 (4) Section 17(4)-- 20 omit, insert-- 21 `(4) The members of the management committee may change the 22 incorporated association's nominated address by giving the 23 chief executive notice in the approved form.'. 24 Clause 11 Amendment of s 18 (Inspecting register) 25 (1) Section 18-- 26 insert-- 27 `(2A) However, the chief executive may, on the application of an 28 incorporated association or a member of an incorporated 29 association, withhold information about the association or a 30 member of the association from the register available for 31

 


 

s 12 11 s 14 Associations Incorporation and Other Legislation Amendment Bill 2006 inspection by another person if the chief executive has 1 reasonable grounds for believing the disclosure of the 2 information would put the association or member at risk of 3 harm. 4 5 Examples of information chief executive may withhold-- 6 · address of a women's refuge 7 · address of a member of an incorporated association who is a party 8 to a domestic violence order'. (2) Section 18(2A) and (3)-- 9 renumber as section 18(3) and (4). 10 Clause 12 Amendment of s 29 (Name of incorporated association to 11 include `incorporated' etc.) 12 (1) Section 29, heading-- 13 omit, insert-- 14 `29 Incorporated association's name to include 15 `incorporated' and be in English characters'. 16 (2) Section 29-- 17 insert-- 18 `(3) The association's name must be in English characters.'. 19 Clause 13 Amendment of s 32 (Name of incorporated association to 20 appear on documents) 21 (1) Section 32, heading, `Name'-- 22 omit, insert-- 23 `Registered name'. 24 (2) Section 32, `name in legible characters'-- 25 omit, insert-- 26 `registered name in legible English characters'. 27 Clause 14 Replacement of s 54 (Form in which rules must be kept) 28 Section 54-- 29

 


 

s 15 12 s 15 Associations Incorporation and Other Legislation Amendment Bill 2006 omit, insert-- 1 `54 Form in which rules must be kept 2 `(1) The secretary of an incorporated association must ensure that the association's rules, as lodged with the chief executive, or a 3 copy of the rules that is given to someone, are set out in 4 printed legible form. 5 Maximum penalty--5 penalty units. 6 `(2) If an incorporated association's rules are not written in the 7 English language, the secretary of the association must ensure 8 that a translation of the rules into English, certified by a 9 person to be a correct translation, accompanies any copy of 10 the rules that is given to someone. 11 Maximum penalty--5 penalty units. 12 `(3) However, the secretary of an incorporated association does 13 not commit an offence against subsection (2) if the person to 14 whom the copy of the rules is given indicates he or she does 15 not require a translation of the rules.'. 16 Clause 15 Replacement of ss 55 and 56 17 Sections 55 and 56-- 18 omit, insert-- 19 `55 Annual general meetings 20 `An incorporated association must hold an annual general 21 meeting within 6 months after the end date of the association's 22 reportable financial year. 23 `56 Rules may allow meetings using communication 24 technology 25 `(1) The rules of an incorporated association may permit the 26 association to hold meetings, or permit members to take part 27 in its meetings, by using any technology that reasonably 28 allows members to hear and take part in discussions as they 29 happen. 30 31 Example of use of technology-- 32 teleconferencing

 


 

s 16 13 s 17 Associations Incorporation and Other Legislation Amendment Bill 2006 `(2) A member who participates in a meeting under subsection (1) 1 is taken to be present at the meeting.'. 2 Clause 16 Amendment of s 57 (General meetings) 3 (1) Section 57, heading-- 4 omit, insert-- 5 `57 Management committee to ensure association complies 6 with its rules for meetings'. 7 (2) Section 57(3)-- 8 omit. 9 Clause 17 Insertion of new ss 57A and 57B 10 Part 6, division 1, after section 57-- 11 insert-- 12 `57A Minimum quorum for general meetings 13 `(1) The quorum for a general meeting of an incorporated 14 association is at least the number of members elected or 15 appointed to the association's management committee at the 16 close of the association's last general meeting plus 1. 17 `(2) However, if all members of the association are members of the 18 association's management committee, the quorum is the total 19 number of members less 1. 20 `(3) If an incorporated association makes a decision at a meeting 21 of the association for which there is no quorum, the decision 22 has no effect. 23 `57B Inspection of minutes 24 `(1) If asked by a member of an incorporated association, the 25 association's secretary must, within 28 days after the request 26 is made-- 27 (a) make the minute book for a particular general meeting 28 available for inspection by the member at a mutually 29 agreed time and place; and 30

 


 

s 18 14 s 18 Associations Incorporation and Other Legislation Amendment Bill 2006 (b) give the member copies of the minutes of the meeting. 1 `(2) The incorporated association may require the member to pay 2 the reasonable costs of providing copies of the minutes.'. 3 Clause 18 Replacement of pt 6, div 2 (Audits) 4 Part 6, division 2-- 5 omit, insert-- 6 `Division 2 Financial reporting for incorporated 7 associations 8 `58 Definitions for div 2 9 `In this division-- 10 accountant means-- 11 (a) a member of CPA Australia who is entitled to use the 12 letters `CPA' or `FCPA'; or 13 (b) a member of The Institute of Chartered Accountants in 14 Australia who is entitled to use the letters `CA' or 15 `FCA'; or 16 (c) a member of the National Institute of Accountants who 17 is entitled to use the letters `MNIA', `FNIA', `PNA' or 18 `FPNA'. 19 approved person means a person approved for an 20 incorporated association by the chief executive under section 21 59E. 22 auditor means a person registered as an auditor under the 23 Corporations Act. 24 current assets, of an incorporated association, means the 25 assets held by the association as at the end date of the 26 association's last financial year, other than real property or 27 assets capable of depreciation, and includes amounts held in 28 financial institutions, stocks and debentures. 29

 


 

s 18 15 s 18 Associations Incorporation and Other Legislation Amendment Bill 2006 1 Examples of assets capable of depreciation-- 2 · vehicles 3 · office equipment end date, in relation to an incorporated association's financial 4 year, means the date stated in the association's rules to be the 5 end date or closing date of the association's financial year. 6 level 1 incorporated association means an incorporated 7 association that has-- 8 (a) current assets of more than the amount prescribed under 9 a regulation or, if no amount is prescribed, more than 10 $100000; or 11 (b) total revenue of more than the amount prescribed under 12 a regulation or, if no amount is prescribed, more than 13 $100000. 14 level 2 incorporated association means an incorporated 15 association that is not a level 1 incorporated association or a 16 level 3 incorporated association. 17 level 3 incorporated association means an incorporated 18 association that has-- 19 (a) current assets of less than the amount prescribed under a 20 regulation or, if no amount is prescribed, less than 21 $20000; and 22 (b) total revenue of less than the amount prescribed under a 23 regulation or, if no amount is prescribed, less than 24 $20000. 25 total revenue, of an incorporated association, means the 26 association's total income during the last financial year from 27 all the association's activities before any expenses, including 28 the cost to the association of goods sold by the association, are 29 deducted. 30 `58A Meaning of reportable financial year 31 `(1) An incorporated association's reportable financial year is the 32 same as the association's financial year. 33 `(2) However, subsection (1) is subject to subsections (3) to (6). 34

 


 

s 18 16 s 18 Associations Incorporation and Other Legislation Amendment Bill 2006 `(3) If an association is incorporated within 3 months before the 1 end date of the association's financial year, the association's 2 first reportable financial year is the period starting on the day 3 of incorporation and ending on the second end date after 4 incorporation. 5 6 Example for subsection (3)-- 7 The end date of an association's financial year is 30 June 2007. The 8 association was incorporated on 1 April 2007. The period from 1 April 9 2007 until 30 June 2008 is a reportable financial year. `(4) If an association is incorporated more than 3 months before 10 the end date of the association's financial year, the 11 association's first reportable financial year is the period 12 starting on the day of incorporation and ending on the first end 13 date after incorporation. 14 15 Example for subsection (4)-- 16 The end date of an association's financial year is 30 June 2007. The 17 association was incorporated on 1 March 2007. The period from 1 18 March 2007 until 30 June 2007 is a reportable financial year. `(5) If an association changes its financial year and the end date of 19 the changed financial year is 15 months or less after the end 20 date of the association's last financial year, the association has 21 a reportable financial year for the period starting on the day 22 after the end date of the association's last financial year and 23 ending on the end date of the association's changed financial 24 year. 25 26 Example for subsection (5)-- 27 The end date of an association's financial year is 30 June 2007. At a 28 general meeting, the association's financial year is changed to have an 29 end date of 31 July. The period from 1 July 2007 until 31 July 2008 is a 30 reportable financial year. `(6) If an association changes its financial year and the end date of 31 the changed financial year is more than 15 months after the 32 end date of the association's last financial year, the association 33 has a reportable financial year for the period starting on the 34 day after the end date of the association's last financial year 35 and ending on the day that is 12 months before the end date of 36 the association's changed financial year. 37

 


 

s 18 17 s 18 Associations Incorporation and Other Legislation Amendment Bill 2006 1 Example for subsection (6)-- 2 The end date of an association's financial year is 30 June 2007. At a 3 general meeting, the association's financial year is changed to have an 4 end date of 31 October. The period from 1 July 2007 until 31 October 5 2007 is a reportable financial year in addition to the period from 1 6 November 2007 until 31 October 2008. 7 Note-- 8 An incorporated association's reportable financial year will never be 9 less than 3 months or more than 15 months. `59 Level 1 incorporated associations and particular 10 level 2 and 3 incorporated associations 11 `(1) This section applies to the following-- 12 (a) a level 1 incorporated association; 13 (b) a level 2 incorporated association, if the association is 14 required to have an audit conducted under the 15 Collections Act 1966, the Gaming Machine Act 1991 or 16 under any law for any other purpose; 17 (c) a level 3 incorporated association, if the association is 18 required to have an audit conducted under the 19 Collections Act 1966, the Gaming Machine Act 1991 or 20 under any law for any other purpose. 21 `(2) The members of the management committee of the 22 incorporated association must ensure the association, within 6 23 months after the end date of each financial year-- 24 (a) prepares a financial statement for its last reportable 25 financial year; and 26 (b) has the financial statement audited by-- 27 (i) for a level 1 incorporated association--an auditor 28 or an accountant; or 29 (ii) for a level 2 or level 3 incorporated association 30 mentioned in subsection (1)(b) or (c)--an auditor, 31 an accountant, or an approved person; and 32 (c) presents the financial statement and the signed report on 33 the audit (audit report) to the association's annual 34 general meeting for adoption. 35

 


 

s 18 18 s 18 Associations Incorporation and Other Legislation Amendment Bill 2006 Maximum penalty-- 1 (a) for each member of the management committee of a 2 level 1 incorporated association--20 penalty units; or 3 (b) for each member of the management committee of a 4 level 2 or level 3 incorporated association--10 penalty 5 units. 6 `(3) Within 1 month after the financial documents mentioned in 7 subsection (2)(c) are presented to the association's annual 8 general meeting, the following must be lodged with the chief 9 executive-- 10 (a) a copy of the financial statement for the reportable 11 financial year-- 12 (i) as adopted at the annual general meeting, signed 13 and dated by the president or treasurer of the 14 association; or 15 (ii) as presented to the annual general meeting, if it is 16 not adopted at the meeting, signed and dated by the 17 president or treasurer of the association; 18 (b) a copy of the signed audit report; 19 (c) a return in the approved form; 20 (d) the fee prescribed under a regulation. 21 `(4) If subsection (3) is not complied with, each of the following 22 commit an offence-- 23 (a) the secretary of the incorporated association; 24 (b) the president of the incorporated association; 25 (c) the treasurer of the incorporated association. 26 Maximum penalty--4 penalty units. 27 `(5) A person must not audit a financial statement for an 28 incorporated association if the person is-- 29 (a) the secretary, or a member of the management 30 committee, of the incorporated association; or 31 (b) an employee of the incorporated association; or 32

 


 

s 18 19 s 18 Associations Incorporation and Other Legislation Amendment Bill 2006 (c) a partner, employer, or employee of the secretary, or a 1 partner, employer or employee of a member of the 2 management committee, of the incorporated 3 association; or 4 (d) a spouse of a person mentioned in paragraph (a), (b) or 5 (c); or 6 (e) wholly or partly dependent on a person mentioned in 7 paragraph (a), (b) or (c). 8 Maximum penalty--10 penalty units. 9 `(6) A person who is a partner in an unincorporated body must not 10 audit a financial statement for an incorporated association if 11 subsection (5) prohibits any of the partners of the 12 unincorporated body from auditing the financial statement. 13 Maximum penalty for subsection (6)--10 penalty units. 14 15 Example for subsection (6)-- 16 A and B are partners in an accounting firm. A can not conduct an audit 17 because, under subsection (5)(a), A is a member of the association's 18 management committee. B also can not conduct an audit because of 19 subsection (6). `59A Other level 2 incorporated associations 20 `(1) This section applies to a level 2 incorporated association that 21 is not required to have an audit conducted under the 22 Collections Act 1966, the Gaming Machine Act 1991 or under 23 any law for any other purpose. 24 `(2) The members of the management committee of the level 2 25 incorporated association must ensure the association, within 6 26 months after the end date of each financial year-- 27 (a) prepares a financial statement for its last reportable 28 financial year; and 29 (b) presents to the association's annual general meeting for 30 adoption-- 31 (i) the financial statement; and 32 (ii) a statement signed by an auditor, an accountant, or 33 an approved person, that states-- 34

 


 

s 18 20 s 18 Associations Incorporation and Other Legislation Amendment Bill 2006 (A) the person has sighted the association's 1 financial records; and 2 (B) the association's financial records show that 3 the association has bookkeeping processes in 4 place to adequately record the association's 5 income and expenditure and dealings with its 6 assets and liabilities. 7 Maximum penalty for each member of the management 8 committee--10 penalty units. 9 `(3) Within 1 month after the financial documents mentioned in 10 subsection (2)(b) are presented to the association's annual 11 general meeting, the following must be lodged with the chief 12 executive-- 13 (a) a copy of the financial statement for the reportable 14 financial year-- 15 (i) as adopted at the annual general meeting, signed 16 and dated by the president or treasurer of the 17 association; or 18 (ii) as presented to the annual general meeting, if it is 19 not adopted at the meeting, signed and dated by the 20 president or treasurer of the association; 21 (b) a copy of the signed statement mentioned in subsection 22 (2)(b)(ii); 23 (c) a return in the approved form; 24 (d) the fee prescribed under a regulation. 25 `(4) If subsection (3) is not complied with, each of the following 26 commit an offence-- 27 (a) the secretary of the incorporated association; 28 (b) the president of the incorporated association; 29 (c) the treasurer of the incorporated association. 30 Maximum penalty--4 penalty units. 31 `(5) A person must not sign the statement mentioned in subsection 32 (2)(b)(ii) if the person is-- 33

 


 

s 18 21 s 18 Associations Incorporation and Other Legislation Amendment Bill 2006 (a) the secretary, or a member of the management 1 committee, of the incorporated association; or 2 (b) an employee of the incorporated association; or 3 (c) a partner, employer, or employee of the secretary, or a 4 partner, employer or employee of a member of the 5 management committee, of the incorporated 6 association; or 7 (d) a spouse of a person mentioned in paragraph (a), (b) or 8 (c); or 9 (e) wholly or partly dependent on a person mentioned in 10 paragraph (a), (b) or (c). 11 Maximum penalty for subsection (5)--10 penalty units. 12 `59B Other level 3 incorporated associations 13 `(1) This section applies to a level 3 incorporated association that 14 is not required to have an audit conducted under the 15 Collections Act 1966, the Gaming Machine Act 1991 or under 16 any law for any other purpose. 17 `(2) The members of the management committee of the level 3 18 incorporated association must ensure the association, within 6 19 months after the end date of each financial year-- 20 (a) prepares a financial statement for its last reportable 21 financial year; and 22 (b) presents to the association's annual general meeting for 23 adoption-- 24 (i) the financial statement; and 25 (ii) a statement signed by the association's president or 26 treasurer that states the association keeps financial 27 records in a way that properly records the 28 association's income and expenditure and dealings 29 with its assets and liabilities. 30 Maximum penalty for each member of the management 31 committee--10 penalty units. 32

 


 

s 18 22 s 18 Associations Incorporation and Other Legislation Amendment Bill 2006 `(3) Within 1 month after the financial documents mentioned in 1 subsection (2)(b) are presented to the association's annual 2 general meeting, the following must be lodged with the chief 3 executive-- 4 (a) a copy of the financial statement for the reportable 5 financial year-- 6 (i) as adopted at the annual general meeting, signed 7 and dated by the president or treasurer of the 8 association; or 9 (ii) as presented to the annual general meeting, if it is 10 not adopted at the meeting, signed and dated by the 11 president or treasurer of the association; 12 (b) a copy of the signed statement mentioned in subsection 13 (2)(b)(ii); 14 (c) a return in the approved form; 15 (d) the fee prescribed under a regulation. 16 `(4) If subsection (3) is not complied with, each of the following 17 commit an offence-- 18 (a) the secretary of the incorporated association; 19 (b) the president of the incorporated association; 20 (c) the treasurer of the incorporated association. 21 Maximum penalty for subsection (4)--4 penalty units. 22 `59C Inspection of financial documents 23 `(1) If asked by a member of an incorporated association, the 24 association's secretary must, within 28 days after the request 25 is made-- 26 (a) make the association's financial documents available for 27 inspection by the member at a mutually convenient time 28 and place; and 29 (b) give the member copies of the documents. 30 Maximum penalty--4 penalty units. 31

 


 

s 19 23 s 20 Associations Incorporation and Other Legislation Amendment Bill 2006 `(2) The incorporated association may require the member to pay 1 the reasonable costs of providing the copies of the documents. 2 `59D Defence 3 `It is a defence to a prosecution of a member of a management 4 committee of an incorporated association for an offence 5 against a provision of this division to prove the member took 6 all reasonable steps to ensure the provision was complied 7 with. 8 `59E Approved persons 9 `The chief executive may approve a person as an approved 10 person for an incorporated association if the chief executive is 11 satisfied the person has the necessary experience or 12 qualifications to-- 13 (a) conduct an audit of an incorporated association under 14 section 59; or 15 (b) provide a signed statement mentioned in section 16 59A(2)(b)(ii).'. 17 Clause 19 Amendment of s 62 (Election of management committee) 18 Section 62-- 19 insert-- 20 `(3) In this section-- 21 casual vacancy, on a management committee, means a 22 vacancy that happens when an elected member of the 23 management committee resigns, dies or otherwise stops 24 holding office.'. 25 Clause 20 Amendment of s 63 (Meetings of management 26 committee) 27 Section 63(2)-- 28 omit. 29

 


 

s 21 24 s 23 Associations Incorporation and Other Legislation Amendment Bill 2006 Clause 21 Insertion of new s 63A 1 After section 63-- 2 insert-- 3 `63A Meetings by using communication technology 4 `(1) The management committee may hold meetings, or permit 5 members to take part in its meetings, by using any technology 6 that reasonably allows members to hear and take part in 7 discussions as they happen. 8 9 Example of use of technology-- 10 teleconferencing `(2) A member of a management committee who participates in a 11 meeting under subsection (1) is taken to be present at the 12 meeting.'. 13 Clause 22 Amendment of s 66 (Management committee to ensure 14 association has appropriate individual as secretary) 15 Section 66-- 16 insert-- 17 `(3) It is declared that-- 18 (a) a secretary mentioned in subsection (1)(a) or (b) is a 19 member of the management committee; and 20 (b) a secretary mentioned in subsection (1)(c) is not a 21 member of the management committee.'. 22 Clause 23 Replacement of s 67 (Secretary may be appointed or 23 removed at any time) 24 Section 67-- 25 omit, insert-- 26 `67 Management committee may appoint or remove 27 secretary at any time 28 `(1) The management committee of an incorporated association 29 may at any time-- 30 (a) appoint the association's secretary; or 31

 


 

s 24 25 s 25 Associations Incorporation and Other Legislation Amendment Bill 2006 (b) remove a person appointed by the committee as the 1 association's secretary. 2 `(2) If the management committee removes a secretary who was 3 appointed as mentioned in section 66(1)(b), the removal does 4 not otherwise affect the person's membership of the 5 management committee.'. 6 Clause 24 Insertion of new s 69A 7 After section 69-- 8 insert-- 9 `69A Functions of secretary 10 `(1) The secretary's functions include-- 11 (a) calling meetings of the incorporated association, 12 including preparing notices of a meeting and of the 13 business to be conducted at the meeting in consultation 14 with the president of the association; and 15 (b) keeping minutes of each meeting; and 16 (c) keeping copies of all correspondence and other 17 documents relating to the association; and 18 (d) maintaining the association's register of members. 19 `(2) Subsection (1)-- 20 (a) does not limit any other function the secretary has under 21 any other provision of this Act; and 22 (b) does not prevent an association's rules from stating 23 other functions for the secretary.'. 24 Clause 25 Replacement of s 70 (Insurance) 25 Section 70-- 26 omit, insert-- 27 `70 Public liability insurance generally 28 `(1) The management committee of an incorporated association 29 must, at least annually, consider whether there is a need for 30

 


 

s 25 26 s 25 Associations Incorporation and Other Legislation Amendment Bill 2006 the incorporated association to take out public liability 1 insurance. 2 `(2) The management committee must report its decision about the 3 need for public liability insurance for the association to the 4 association's members at the association's next annual general 5 meeting. 6 `(3) If the management committee decides there is no need to take 7 out public liability insurance, the committee must, at the 8 annual general meeting-- 9 (a) give the association's members reasons for the 10 committee's decision; and 11 (b) advise the members that the failure to take out public 12 liability insurance means that the association's assets 13 would be at risk if there were a successful claim against 14 the association. 15 `(4) The management committee must ensure that-- 16 (a) as soon as practicable after a person applies to become, 17 but before the person becomes, a member of the 18 association, the person is advised-- 19 (i) whether or not the association has public liability 20 insurance; and 21 (ii) if the association has public liability 22 insurance--the amount of the insurance; and 23 (b) before a person is elected or appointed as a member of 24 the association's management committee, the person is 25 advised-- 26 (i) whether or not the association has public liability 27 insurance; and 28 (ii) if the association has public liability 29 insurance--the amount of the insurance. 30 `(5) The management committee must ensure that any person or 31 entity with whom the association may have dealings, and 32 which could be expected to have an interest in knowing 33 whether or not the association has public liability insurance, is 34 advised if the association does not have public liability 35 insurance. 36

 


 

s 26 27 s 27 Associations Incorporation and Other Legislation Amendment Bill 2006 `(6) This section is subject to section 70A. 1 2 Note-- 3 This section imposes obligations on a management committee but does 4 not impose any criminal penalties in relation to breaches of those 5 obligations. `70A Particular incorporated associations must have 6 public liability insurance 7 `(1) This section applies if an incorporated association is-- 8 (a) an owner of land; or 9 (b) a lessee of land; or 10 (c) a trustee of trust land under the Land Act 1994. 11 `(2) The members of the management committee of the 12 incorporated association must ensure-- 13 (a) the association takes out public liability insurance in 14 relation to the land in an amount decided by the 15 management committee; and 16 (b) the insurance cover is kept current at all times. 17 Maximum penalty for each member of the management 18 committee--2 penalty units. 19 `(3) It is a defence to a prosecution of a member of a management 20 committee for an offence against subsection (2) for the 21 member to prove the member took all reasonable steps to 22 ensure the association complied with subsection (2).'. 23 Clause 26 Amendment of s 91 (Declaration of applied Corporations 24 legislation) 25 Section 91(3)(d), `registered office of'-- 26 omit, insert-- 27 `nominated address for'. 28 Clause 27 Amendment of s 93 (Cancellation of incorporation) 29 (1) Section 93(1)(f) to (h)-- 30

 


 

s 28 28 s 29 Associations Incorporation and Other Legislation Amendment Bill 2006 renumber as section 93(1)(g) to (i). 1 (2) After section 93(1)(e)-- 2 insert-- 3 `(f) an incorporated association has not lodged with the 4 chief executive the documents required to be lodged 5 under part 6, division 2;'. 6 (3) Section 93(1) and (2), `by prepaid registered post,'-- 7 omit. 8 Clause 28 Amendment of s 113 (Who may make an appeal?) 9 Section 113, `this Act'-- 10 omit, insert-- 11 `section 112'. 12 Clause 29 Insertion of new s 119A 13 After section 119-- 14 insert-- 15 `119A Chief executive may ask for information or 16 documents 17 `(1) This section applies if the chief executive receives a complaint 18 about a possible contravention of this Act. 19 `(2) The chief executive may, by notice given to a relevant person, 20 require the relevant person to-- 21 (a) give to the chief executive, within a stated reasonable 22 time and in a stated reasonable way, information in the 23 person's knowledge about a stated matter relating to the 24 incorporated association; or 25 (b) give to the chief executive, within a stated reasonable 26 time and in a stated reasonable way, a document in the 27 person's possession or control about a stated matter 28 relating to the incorporated association. 29 `(3) When making the requirement, the chief executive must warn 30 the person it is an offence to fail to give the information, or 31

 


 

s 30 29 s 31 Associations Incorporation and Other Legislation Amendment Bill 2006 produce the document, unless the person has a reasonable 1 excuse. 2 `(4) The person must comply with a requirement under subsection 3 (2), unless the person has a reasonable excuse. 4 Maximum penalty--20 penalty units. 5 `(5) It is a reasonable excuse for an individual to fail to comply 6 with the requirement if complying with the requirement might 7 tend to incriminate the individual. 8 `(6) In this section-- 9 relevant person, in relation to a complaint, means-- 10 (a) a person who is, or was, a member of the management 11 committee; or 12 (b) a person who is, or was, an auditor, an accountant or an 13 approved person who the chief executive believes, on 14 grounds that are reasonable in the circumstances, has 15 information or documents relevant to the matter of the 16 complaint.'. 17 Clause 30 Amendment of s 126 (Evidence) 18 Section 126(3), `actuary'-- 19 omit, insert-- 20 `accountant or approved person'. 21 Clause 31 Amendment of s 127 (Evidentiary provisions) 22 (1) Section 127(1)(a), (b) and (c), `specified'-- 23 omit, insert-- 24 `stated'. 25 (2) Section 127(1)(d)-- 26 omit, insert-- 27 `(d) that, on a date stated in the certificate, a financial 28 document required to be given to the chief executive 29

 


 

s 32 30 s 35 Associations Incorporation and Other Legislation Amendment Bill 2006 under part 6, division 2 has, or has not, been received by 1 the chief executive;'. 2 Clause 32 Amendment of s 129 (Delegation) 3 Section 129(2)-- 4 omit. 5 Clause 33 Insertion of new s 130A 6 After section 130-- 7 insert-- 8 `130A Documents not in English language 9 `(1) If there is a requirement under this Act to lodge a document 10 and the document is in a language other than English, the 11 requirement is taken to include a requirement that a 12 translation of the document into English, certified by a person 13 to be a correct translation, be lodged at the same time. 14 `(2) For the purpose of the administration of this Act, the English 15 version of a document required for this Act prevails over a 16 version of the document that is not in English.'. 17 Clause 34 Amendment of s 138 (Service) 18 Section 138(1), before `address'-- 19 insert-- 20 `association's nominated address, or to the'. 21 Clause 35 Insertion of new pt 16, div 1 hdg 22 Part 16, before section 145-- 23 insert-- 24 `Division 1 Transitional provision for Audit 25 Legislation Amendment Act 2006'. 26

 


 

s 36 31 s 37 Associations Incorporation and Other Legislation Amendment Bill 2006 Clause 36 Amendment of s 145 (Transitional provision for Audit 1 Legislation Amendment Act 2006) 2 Section 145, heading-- 3 omit, insert-- 4 `145 Audits'. 5 Clause 37 Insertion of new pt 16, div 2 and schedule 6 After section 145-- 7 insert-- 8 `Division 2 Transitional provisions for 9 Associations Incorporation and 10 Other Legislation Amendment Act 11 2006 12 `146 Nominated address 13 `(1) This section applies if, immediately before the 14 commencement of this section, an incorporated association 15 had a registered office complying with section 17(2) as in 16 force immediately before the commencement. 17 `(2) On the commencement, the incorporated association's 18 registered office is taken to be the association's nominated 19 address. 20 `147 Association's name 21 `(1) This section applies if, on the commencement of this section, 22 an incorporated association's name does not comply with 23 section 29(3). 24 `(2) The incorporated association is not required to comply with 25 section 29(3) until 3 months after the next annual general 26 meeting of the association after the commencement. 27

 


 

s 37 32 s 37 Associations Incorporation and Other Legislation Amendment Bill 2006 `148 Insurance 1 `(1) This section applies if an incorporated association has an 2 annual general meeting within 3 months after the 3 commencement of this section. 4 `(2) The management committee of the incorporated association is 5 not required to comply with section 70(2) and (3) until its 6 second annual general meeting after the commencement. 7 `149 Financial reporting 8 `The provisions of part 6, division 2, as amended by the 9 Associations Incorporation and Other Legislation Amendment 10 Act 2006, only apply to an incorporated association if the end 11 date of the association's reportable financial year happens 12 after the commencement of this section. 13 `150 Approved persons 14 `(1) This section applies if, immediately before the 15 commencement of this section, a person was approved by the 16 chief executive under section 59(1)(b)(v), as in force 17 immediately before the commencement, as having appropriate 18 qualifications to audit the financial affairs of an incorporated 19 association. 20 `(2) On the commencement, the person is taken to be an approved 21 person for the incorporated association. 22 `Schedule Dictionary 23 section 2'. 24

 


 

s 38 33 s 40 Associations Incorporation and Other Legislation Amendment Bill 2006 Part 3 Amendment of Classification of 1 Computer Games and Images 2 Act 1995 3 Clause 38 Act amended in pt 3 4 This part amends the Classification of Computer Games and 5 Images Act 1995. 6 Clause 39 Amendment of s 5 (Classification of computer games by 7 computer games classification officer) 8 (1) Section 5(3), fifth dot point-- 9 omit, insert-- 10 `· the National Classification Code, to the extent it relates 11 to computer games'. 12 (2) Section 5-- 13 insert-- 14 `(4) In this section-- 15 National Classification Code means the Code under the 16 Classification (Publications, Films and Computer Games) Act 17 1995 (Cwlth).'. 18 Part 4 Amendment of Classification of 19 Publications Act 1991 20 Clause 40 Act amended in pt 4 21 This part amends the Classification of Publications Act 1991. 22

 


 

s 41 34 s 41 Associations Incorporation and Other Legislation Amendment Bill 2006 Clause 41 Amendment of s 32 (Evidentiary provisions) 1 (1) Section 32(1)(c)-- 2 renumber as section 32(1)(d). 3 (2) Section 32(1)-- 4 insert-- 5 `(c) a specified publication would, if classified, on a relevant 6 date or during a period of time, have been classified (and 7 specifying the classification); or'. 8

 


 

35 Associations Incorporation and Other Legislation Amendment Bill 2006 Schedule Minor amendments of 1 Associations Incorporation Act 2 1981 3 section 3 4 1 Section 31, heading-- 5 omit, insert-- 6 `31 Registered name on seal'. 7 2 Sections 31, (other than heading), 35(1), 36(1) and (2), 37, 8 38, 46(2)(a) and 78, before `name'-- 9 insert-- 10 `registered'. 11 3 Sections 35 and 36, heading, before `name'-- 12 insert-- 13 `registered'. 14 © State of Queensland 2006

 


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