Ending an incorporated association
|
New laws for Victorian incorporated associations came into effect on 26 November 2012. We are updating all our resources for Victorian incorporated associations - please check the 'last updated' date at the bottom of our resources to see if they reflect the new laws. The new Associations Incorporation Reform Act 2012 (Vic) can be accessed here, and you can read more about the changes at Consumer Affairs Victoria's website here.
|
A Victorian incorporated association ceases to exist when its incorporation is 'cancelled' by the Consumer Affairs Victoria (CAV) Registrar. How an incorporated association ends will be dependent on a number of factors, including the extent of the assets held by the organisation, and whether the decision to end is voluntary (ie, the will of the members) or compulsory (ie, enforced by a Court or CAV).
PilchConnect is in the process of developing further resources for incorporated associations looking to be cancelled, so watch this space. In the meantime, you can contact CAV (details at the bottom of this page) for the relevant forms needed to voluntarily cancel or wind up an association.
Note: The information below has NOT yet been updated to reflect any relevant changes in the Associations Incorporations Reform Act 2012 (Vic) that came into effect on 26 November 2012.
Voluntary deregistration
On many occasions, the ending of an incorporated association will be done by the consent of the members and committee. Often, this will be the case where an organisation has been set up for a particular cause (eg, a group set up to oppose a planning development), and that cause is no longer relevant. Alternatively, a group may wish to simply end its association as it no longer wishes to pursue its objectives as an organisation.
In Victoria, the Associations Incorporation Act 1981 (Vic) provides for two ways to voluntarily end an incorporated association. These are:
- voluntary cancellation, and
- voluntary winding up.
The method you use will primarily depend on the size and status of your organisation. Further information on these two methods can be found below.
Note:
Always check your organisation's rules to see whether there are additional requirements to winding up as these are likely to affect how you must undertake this process.
Voluntary cancellation is available to small associations with few assets, or groups that are no longer active and wish to formally end the affairs of the organisation. An application for voluntary cancellation may only be made where an incorporated association:
- has a total of assets worth less than $10,000
- does not have any outstanding debts, fees or liabilities, and
- is not a party to ongoing legal proceedings.
If your organisation wishes to end, but does not meet the above criteria for cancellation then it must be ‘wound up’ by special resolution. This option is available to any incorporated associations in Victoria, regardless of size.
‘Winding up’ involves the appointment of a person (usually a specially qualified accountant) called a ‘liquidator’ who takes over the running of the incorporated association, gets control of the company’s assets and then sells or distributes those assets to pay of the association's creditors. If there are any funds left over after the creditors are paid, the liquidator will pay or distribute those funds in accordance with the association's constitution.
Compulsory deregistration
In some occasions, an association will be wound up or cancelled without the consent of its members. The Associations Incorporation Act 1981 (Vic) allows an organisation to be ended either by Consumer Affairs Victoria, or by the Courts in certain circumstances.
The circumstances in which compulsory deregistration may occur vary significantly, however generally relate to a situation where the association is no longer able to operate, where the it has repeatedly failed to meet its compliance and reporting obligations, or where there has been serious misconduct by the association.
PilchConnect is in the process of developing further resources for incorporated associations that have been subject to an order to be deregistered, so watch this space.