Federal Treasury - Review of companies limited by guarantee

The Federal Treasury, as part of its review of the Corporations Act generally, are examining the provisions that relate to financial reporting by unlisted public companies. This group of companies includes companies limited by guarantee. For the Treasury discussion paper see here.

This Federal review is important because it could alter the reporting obligations of about 11,000 existing not-for-profit (NFP) organisations. If reforms are made, it could also influence the legal structure chosen by existing and future NFPs (eg, whether to be incorporated as a company limited by guarantee or an incorporated association).

PILCH's work on this issue

PILCH, with support from its member firm Clayton Utz, held an (informal) expert think tank to discuss the questions raised under the Federal review and the broader issue of the most appropriate regulatory framework for NFPs.

Drawing on the think tank discussion, PILCH has made a written submission (August 2007). PILCH is also developing a new legal service for NFPs. The new NFP legal service will assist the NFP sector with free/low cost information, advice and training in order to better understand NFP legal and legally-related issues, as well as supporting professionals who advise NFPs about these issues. In this way, the new service will (with support from government, philanthropic and corporate sectors) become a hub of NFP-specific legal and legally-related expertise, thereby promoting and supporting the highest possible standards of governance by community organisations.

We will continue to monitor this review and to let our members, supporters and those NFPs on our database know about any proposed reforms.

Any queries about this submission, or to be added to our database (for further updates), please contact Sue Woodward, Policy Officer, PILCH

policy.pilch@vicbar.com.au

(posted 22 August 2024)