Company Limited by Guarantee

[Guest ozzie]

The Australian Parachute Federation has just put out a NPRM to members that it will become a Company Limited by Guarantee.

 

Would this be the way for the RAAus also?

 

http://communitydoor.org.au/establish-a-community-service-organisation/company-limited-by-guarantee

 

 

[Guest Andys@coffs]

Ozzie

 

When we changed the name from AUF to RAAus we changed from a Company limited by Guarantee (which in effect is a national registration ) to an ACT incorporated association. I don't believe at the time there was any real discussion with the greater membership as to why we would do that ( or at least I don't remember any discussion), but I suspect that it was because A Company limited by Guarantee had real and serious obligations for the directors (board members) policed by ASIC...and incorporated associations were for school canteens or sports clubs.......and policed by........<sounds of crickets>

 

I believe that the form of incorporation will be revisited when we look at the constitution rewrite that the CEO discussed in last nights email newsletter

 

Andy

 

 

[Guest ozzie]

Hmmm don't remember any discussion either then didn't know that it was set up like that. wonder if it was changed to limit the liability over the problems the RAAus was having back then.

 

 

[Bill Hamilton]

In my view, RAA should have become a Public Company, limited by guarantee, years ago.

 

It is the appropriate form of incorporation for an organisation of this nature, that operates Australia wide.

 

The legal end enforceable responsibilities of directors, and many other provisions of the Corporations Act 2001, such as accounting standards and audit requirements, give much greater guarantees to members than Associations law, which, as a previous poster has rightly said, is for small clubs.

 

The only caution I would make in such a transition, is that the rules for voting at AGM/GM/EGM must be fair to all members, the present method of RAA voting, translated to an ASIC accepted Constitution would fit the bill.

 

Cheers,

 

Bill Hamilton