DMIRS Associations   Step 1 Review the rules

The first step in the process of changing
the rules of an incorporated association is to review the existing rules and identify
what changes are required. Every incorporated club and association is
required to review its existing rules and update the document to meet the requirements
of the Associations Incorporation Act 2015. You have until 30 June 2019 to ensure that
the rules contain all of the matters required by Schedule 1 and are otherwise consistent
with the Act. It is also a good time to ensure the rules
meet the members’ practical needs and to clarify any rules. There are 19 matters that need to be included
in the rules. These are known as the Schedule 1 requirements
and include matters like who can be a member, what is the process for electing the committee
and how is a general meeting called. It is up to the members to decide exactly
how it will address each of these requirements in its rules. You will find a table of the schedule 1 requirements
at the end of Transition Pack 3. Determining what needs to be addressed or
updated in your rules is the first step in the change of rules process. As a starting point the committee should assess
whether the existing rules contain all of the Schedule 1 requirements and see what needs
to be added. You should also check for any other clauses
that need to be updated to be consistent with the Act. There are some new matters that need to be
addressed in the rules. For example a process needs to be included
for dealing with disputes between members. Your financial year also needs to be included
in the rules. It is important to note that the financial
year can be selected to suit the needs of the Association and doesn’t have to end
on 30 June. The rules need to set out the percentage of
members required to request a special general meeting be held. This percentage cannot be set greater than
20 per cent. You can find more information about each of
the schedule 1 requirements in the What’s in the Rules publication available on Consumer
Protection’s website. Whilst ensuring that the Schedule 1 matters
are addressed is a large part of updating the rules, there are also some other issues
to watch out for. The name and sections of the Act have changed,
so it is important to change any references to show the new name of the Act and the new
section numbers. To assist you, the Transition Pack 3 includes
a table of the most commonly referred to sections of the act and the new reference numbers. It is also important to make sure that any
clauses referring to special resolutions state that the special resolution will be passed
by a three fourths or 75% majority. Some older rules may still state that a special
resolution can be passed by a two thirds majority and these need to be corrected. You will usually find references to passing
a special resolution in clauses about changing the rules and winding up the association. To start the process of updating the rules
get a copy of the association’s existing rules, download your copy of Transition Pack
3 from Consumer Protection’s website and using the checklist on page 13 review the
rules to see what changes are required to comply with the Act. Once you know what changes are needed you
can decide how you are going to update the document.

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