Federal Government Review of Not for Profit Companies
Monday, 2nd July 2007 at 12:51 pm
The Federal Government is reviewing Not for Profit companies – under the company law umbrella – as it relates to unlisted public companies.
And according to PILCH the review is important for the sector because it could alter the reporting obligations of about 11,000 existing NFP organisations.
The Policy Officer for Public Interest Law Clearing House (Vic) Inc (PILCH), Sue Woodward says if reforms are made, it could also influence the legal structure chosen by future organisations (for example it might make a company limited by guarantee a preferable option to an incorporated association).
Woodward says PILCH is planning to make a submission drawing on its expertise and experience, and that of its members and others and it is keen to use the review as an opportunity to both:
(1) respond to the direct questions raised in the discussion paper (about reporting obligations etc); and
(2) to put forward something that addresses the bigger picture – if a new corporate form (especially one that includes fundraising provisions) was introduced, and migration from incorporated association acts was easy/low cost, then significant progress towards national uniformity could be achieved without the need for referrals of powers or mutual recognition of state-based reforms.
Woodward says the discussion paper from Treasury is the first sign of interest from the Federal Government so it is important to present a clear and thoughtful response from the Not for Profit sector.