constitution
BHC Constitution – Proposed Changes
Summary
1. In 2009 changes were made to Associations Incorporation Act, which means that all associations[1] are required to update their constitution to comply with the Act. The reforms will help more than 35,000 associations across the state operate more effectively and make it easier to manage their affairs. See NSW Fair Trading’s – Fact Sheet ‘changes to association legislation’ (Attachment A) which briefly outlines the changes and their implications. Under the Act, associations may also:
- adopt the model constitution
- adopt the model constitution with changes, or
- draft its own constitution
2. BHC’s current constitution (Attachment B) was voted in at the 2005 AGM, however was not submitted to the NSW Dept of Fair Trading, so is therefore not valid, which means the NSW Dept Fair Trading’s Model Constitution (Attachment C) is by default is the Club’s legal constitution.
3. NSW Dept of Communities (Sport and Recreation) has developed a model sports constitution template[2] designed specifically for community sporting clubs. The template covers issues related to sporting clubs, for example, sport must deal with the impact of drugs; sport may be affected by child protection legislation; and sport operates under a national system where the national body can make rulings and set policy that will flow through to the sport and affect those playing at club level. The template also addresses changes to the Act and is consistent with the Australian Sports Commission’s ‘Governance Principles: A Good Practice Guide’.
A new constitution for BHC has been drafted based on Sport & Rec’s model club template (Attachment D).
4. BHC has several options:
- Do nothing – by default the NSW Dept Fair Trading’s Model Constitution would continue to be our Constitution. This is a generic constitution covering 35,000 different types of Associations in NSW.
- Submit BHC’s 2005 constitution – this constitution has flaws and does not comply with the new changes to the Act. If submitted, would be rejected.
- Submit new constitution – draft a new constitution complying with changes to the Act.
5. How is the constitution changed?
An association may change its constitution by passing a special resolution at its AGM. A copy of the new constitution must be notified to all members prior to the AGM.
The association must apply for registration of the changes (to NSW Dept Fair Trading) within 28 days of the special resolution and the application must:
- be in the approved form (Application to change objects or constitution – Form A6).
- include details of the proposed change
- include a copy of the special resolution as passed, and
- include the prescribed fee.
A change will only take place once it is registered with NSW Dept Fair Trading. An application may be refused if it:
- does not comply with the Act
- is not in the approved form, or
- is lodged more than 28 days after passing the special resolution.
An association representative must certify that the constitution complies with the Act.
Recommendation:
A new constitution for BHC, based on the NSW Department of Communities (Sport and Recreation) model sports constitution template, be adopted (Attachment D).
J Grant
on behalf of BHC
3 August 2010
[1] Within the Act the term ‘association’ is utilised to refer to the organisation that is incorporated, i.e. BHC is the Incorporated Association (not to be confused with FNC Hockey Association)
[2] For further info on the model template, see: http://www.dsr.nsw.gov.au/sportsclubs/ryc_corporate_constitution.asp
Attachments:
A Fact Sheet – NSW Fair Trading – changes to associations’ legislation – July 2010
C Constitution – Model – 2010 NSW Fair Trading (our current legal constitution)
D Constitution – BHC 16-8-2010 (new constitution for adoption)
