NSW Looks at NFP Governance
29 October 2013 at 9:26 am
NSW Government has released a discussion paper in a bid to improve governance for more than 36,000 Not for Profit associations across the state.
The paper, Improving governance within incorporated associations, will explore possible governance solutions for associations, including cultural and community groups, sporting clubs, musical, arts and crafts societies, and sporting clubs, and is open for public comment until December 6.
Minister for Fair Trading Anthony Roberts said it was crucial that NSW had a sustainable, healthy Not for Profit sector and that incorporated associations had the confidence of their members and communities.
“Incorporated associations are generally run by volunteers and we need to make their work easier while also ensuring accountability,” Roberts said.
“Incorporated associations play an important role in our communities and it is vital that they have the confidence of their members and the community.
“Unfortunately, Fair Trading receives quite serious allegations and concerns about governance within some incorporated associations.
“Strong governance is crucial to ensuring accountability and to help tackle this issue.”
The Discussion Paper explores 10 focused governance solutions, including:
• The appointment of independent returning officers in certain circumstances;
• Granting public warning powers to Fair Trading;
• Mandatory mediation before going to court;
• Mandatory practice directions and banning powers for the Commissioner for Fair Trading;
• Allowing a member of an association to apply to the Local Court for an enforcement order;
• Providing an oppressive conduct remedy;
• Disclosure of interests to be recorded in an association’s minutes;
• Cancellation of registration on the grounds it is in the public interest to do so; and
• Allowing Fair Trading to take action for misleading or deceptive conduct.
“The NSW Government does not want to increase the workload of incorporated associations but wants to see greater transparency and accountability,” Roberts said.
To download the Discussion Paper and make a comment, visit the Fair Trading website.
