Improving Governance within Incorporated Associations

  • Date:06 Dec 2013
  • Type:Policy submission

The Australian Institute of Company Directors lodged a submission in response to the NSW Department of Fair Trading’s Discussion Paper, Improving Governance within incorporated associations on 6 December 2013.

Company Director’s submission noted broadly speaking, we support the government’s intentions for reform. Many of the proposals in the paper are aimed at providing the Fair Trading Commissioner with sufficient powers to deal with those “outlier” organisations that may suffer from poor governance.

However, we made a number of suggestions in our submission that we believe would assist the government to achieve its intended outcomes. These include:

  • Not requiring all associations to appoint an independent returning officer. This will increase costs and introduce further unnecessary red tape for all associations. Members unsatisfied with election processes can access the association’s dispute resolution mechanism.
  • Organisations should be free to nominate the alternative dispute resolution mechanisms that suits their individual circumstances.
  • It is inappropriate to instil mandatory practice directions, particularly as to how they relate to governance standards.
  • An officer of an association should not be removed from office unless this occurs by way of a court order.

Download the full policy submission (PDF 2 MB).