PilchConnect’s not-for-profit legal seminar series has wrapped up for 2009 and we are currently evaluating and planning for next year's program. 

The 2009 training program was a tremendous success.  We are grateful for the generosity of the lawyers from PILCH's member firms who continue to provide this valuable pro bono assistance to not-for-profit organisations that would not otherwise be able to access this information. 

In total, we delivered 17 training seminars (10 in Melbourne CBD and 7 in outer Melbourne and regional areas) on a range of legal issues, to over 650 individuals representing a diverse range of not-for-profits.  Thank you to all who attended our seminars.  We hope that you have been able to take away some useful knowledge that can be used within your organisation and shared with your colleagues.

Next year’s seminar program is likely to be finalised in January 2010.  We will provide updates via our monthly e-bulletin and our website once we confirm this schedule.  

The power to appoint a person to vote on your behalf at a meeting of a Victorian incorporated association can be given only by the organisation's rules.  Check your organisation's rules carefully to make sure they allow for 'proxy' voting.

The rules of many organisations will specify a deadline for the Secretary to receive proxy forms before the meeting. The rules of some organisations may also allow for:

• non-members to act as proxies;
• a general proxy - which gives a member the right to appoint another to vote as they see fit on all aspects of the organisation's business for a certain period of time;
• a specific proxy - which allows a person to cast a vote only at a particular meeting in a particular way; and/or
• the chairperson to hold the general proxies of many absent members (and therefore enable the chairperson to exercise the proxy in any manner they see fit).

If your rules allow the chairperson to hold a general proxy, it is good practice for the proxy form to set out whether the chairperson must vote in a particular way or whether the chairperson may (or may not) vote in a particular way on the resolution. If the chairperson may vote but does not have to, this means they have a "discretion" about exercising the proxy. If a donor appoints the chairperson as their proxy to vote on a resolution in a particular way, the chairperson must vote in that way.

Further information about proxy voting can be found at Part 6 of our 'Guide for Public Officers and Secretaries of Victorian Incorporated Associations' which can be accessed for free below:

Free training on the new Fair Work Act 2009

JobWatch is an independent not-for-profit employment rights legal centre which provides assistance to Victorian workers about their rights at work.

With the support of the Federal Government, JobWatch is currently offering free information seminars to employers and employees on the Fair Work Act 2009.  These changes to Australia's workplace laws will have an impact on not-for-profit organisations, and JobWatch is in a very good position to advise on these amendments as they are themselves a not-for-profit organisation.

Further details on the free JobWatch training program, including information on how your organisation can request assistance, can be found on the JobWatch website below.

Proposed reduction of red tape for companies limited by guarantee

Is your not-for-profit organisation a company limited by guarantee?  On 4 December 2009, the Federal Government announced its intention to change the Corporations Law by reducing red tape for companies, including the not-for-profit 'company limited by guarantee' legal structure.

The Corporations Amendment (Corporate Reporting Reform) Bill 2010 has now been released for public comment, together with associated regulations and a draft Regulatory Impact Statement.  The proposals are designed to reduce compliance burdens on smaller companies (including companies limited by guarantee), whilst recognising the importance of regular reporting for transparency and accountability purposes.

The Explanatory Material to the draft amendments recognises that it is often the case that the small size of companies limited by guarantee means that these organisations may not have the resources to comply with extensive reporting requirements, and proposes a three-tiered reporting regime that is based on annual revenue and tax status.  This will remove the requirement for audited financial statements for many smaller companies limited by guarantee.

The Federal Government is seeking written submissions to the draft amendments by close of business Wednesday 3 February 2010.  For further information on the proposals, including a link to the full text of the Bill and supporting material, see the  PilchConnect website.

Proposed harmonisation of OHS laws by Safe Work Australia

Safe Work Australia is a national body which is currently trying to get all States and Territories to agree to adopt a uniform approach to occupational health and safety (OHS) laws.  Safe Work Australia has called for submissions on a draft ‘Model Act’ which is likely to replace Victoria's current OHS legislation.

PilchConnect has made a submission to this review, focussing on the Model Act's treatment of volunteers.  PilchConnect has advocated for greater clarity on issues that are commonly faced by not-for-profits, such as the safety obligations that are owed to volunteer workers and the potential liabilities and protections available for volunteer committee members. 

A link to our submission to this review can be found on PilchConnect's  Submission page.

Update on the Productivity Commission's study into the NFP sector

Following the recent release of the Productivity Commission's Draft Report into the Contribution of the Not-for-Profit Sector, the Commission is now in the process of finalising its full report, scheduled for release by the end of January 2010.  

The Commission has indicated that it will be recommending significant changes to the regulation of Australia’s large and diverse community sector, including a possible 'one stop shop' for registration, fundraising and taxation issues, as well as providing the Government with options for improving governance and accountability for not-for-profits. 

The Commission's final report is to be guided by a large number of public submissions on the review, including a detailed submission from PilchConnect.  For further details about the review, including a link to our submissions to the Commission, see PilchConnect's  Submission page.

Proposed amendments to the Associations Incorporation Regulations 2009

Consumer Affairs Victoria (CAV) is in the process of seeking to amend the Associations Incorporation Regulations 2009 and is currently accepting public comments on the proposals.  The intended reforms will introduce changes that impact on Victorian incorporated associations, including changes to:

• fees to be paid by incorporated associations to the Registrar (ie, CAV);
• preparation of financial statements by prescribed associations;
• security to be given by a liquidator; and
• fines that may be imposed by an incorporated association upon a member for breach of the rules of the association. 

CAV has drafted a Regulatory Impact Statement (RIS) on the proposed changes, and has asked for public comments on the amendments no later than 5pm on Friday 11 December 2009.

For further details about this review, including a link to the proposed Regulations and RIS, see the  Consumer Affairs Victoria website.

Proposed changes to the treatment of volunteers under the Equal Opportunity Act 1995

The Victorian Government is currently considering amendments to the Equal Opportunity Act 1995 following the release of the 'Equal Opportunity Review Final Report' (the Gardner Report) which put forward 93 recommendations for improving the legislation.

Included in the recommendations of the Gardner Report is a proposal that volunteers and trainees be included in the definitions of 'employee', 'employer' and 'employment' for the purposes of the Act. 

As the law currently stands, volunteers are generally not able to rely on the provisions of the Equal Opportunity Act if they feel they have been discriminated against.  The proposed amendments will allow volunteer workers to be able to make a complaint of discrimination under the Equal Opportunity Act where they have been treated unfavourably because of the fact that they possess a 'protected attribute', such as their sex, race or because they have a disability. 

PilchConnect will continue to track the proposed changes and keep you updated on progress via our monthly e-bulletin and our website.  Until then, the full details of the review of the Equal Opportunity Act can be found on the  Victorian Equal Opportunity and Human Rights Commission's website. 
 

Changes to Victorian bingo legislation 

The Victorian Commission for Gambling Regulation has recently amended the rules for Victorian community and charity organisations who wish to conduct bingo sessions.  The changes relate to the procedure for organisations who wish to become authorised to run bingo sessions and in particular, the circumstances in which a minor gaming permit will be required. 

For further details on the new rules for conducting bingo sessions in Victoria, see PilchConnect's bingo page by following the below link.

Aid/Watch v Commissioner of Taxation 

Following the Full Federal Court’s judgment in Commissioner of Taxation v Aid/Watch Incorporated, Aid/Watch, Aid/Watch Incorporated is seeking leave to appeal the decision before the High Court. 

For those not aware, this case involved an attempt by the ATO to take away the endorsed charitable status of Aid/Watch, an incorporated association which advocates for efficiency and effectiveness in the delivery of Australian aid.  The ATO stripped Aid/Watch of its endorsed charitable status on the grounds that its main purpose was considered to be of a political nature.  A case summary setting out the main principles of the Federal Court’s decision can be found on the PilchConnect website (see link below). 

There are reports that Aid/Watch has received assistance in meeting the costs of filing the appeal from a number of NFP organisations including World Vision, Plan and the World Wildlife Fund.  This collaboration is a clear indication of the importance of the appeal to the sector, particularly amongst those organisations that have strong advocacy roles, and are actively engaged in debates surrounding government policies.

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