Rules Review Information Resources

Associations using the model rules

There is a transition period for groups who were using the model rules until 26 November 2013. During this time associations using the old model rules can elect to transfer to the new model rules or choose to adopt their own rules. On 26 November 2013, all associations still using the old model rules will automatically transfer to the new model rules.

Groups using the old model rules should review the new model rules, and consider whether they meet the requirements of the group, and whether they wish to automatically transition to the new model rules. The new model rules can be found here.

If your group does not wish to transition to the new model rules, your group can elect to adopt its own rules. To do this, you will need to prepare a set of rules.  You can:

• adopt or adapt PilchConnect's set of Simple Rules that will meet the requirements of the AIR Act - groups can use these as a starting point for drafting their own rules (see resources below)
• adapt the old model rules (you will need to add in extra rules where the old model rules no longer meet the requirements of the AIR Act)
• adapt the new model rules (ie amend the rules that do not suit your organisation - so long as this is in line with the requirements of the AIR Act), or
• draft your own rules from scratch (you may need some help from a lawyer to do this).

Note that associations need to follow a special process to change their rules and pay a fee to CAV if they are adopting or changing their own rules - these issues are covered in the resources below.

Associations using their own rules

Associations using their own rules can continue using their own rules indefinitely.

However, from 26 November 2012, there are two important consequences for the rules of associations that use their own rules:

• if any rule is inconsistent with the AIR Act, the inconsistent rule/s will be invalid. This means that inconsistent rules should not be applied by an association. If invalid rules are followed (even inadvertently) by an association, this will be a technical breach of the law, and
• if your rules do not cover a newly required Scheduled Item, the relevant new model rule that deals with the item not covered by your rules will automatically apply to your organisation. This means that if you follow your own rules without considering the new Scheduled Items, your association may not be complying with the law.

The process explained above can become very confusing for organisations, and means that their rules are unworkable.

PilchConnect recommends that all groups using their own rules update their rules so that they address all the 23 Scheduled Items, or alternatively draft new rules or adopt the new model rules.

PilchConnect's Rules Checklist outlines all the Scheduled Items, explains where they are new or modified, and provides guidance on addressing the items in your rules.

Your group has the following options to make sure your rules comply with the law:

• update your existing rules using PilchConnect's resources
• use PilchConnect's set of Simple Rules as a starting point for drafting new own rules
• adapt the old model rules (you will need to add in extra rules where the old model rules no longer meet the requirements of the AIR Act) to create new own rules
• adopt the new model rules
• adapt the new model rules (ie amend the rules that do not suit your organisation - so long as this is in line with the requirements of the AIR Act), or
• draft your own rules from scratch (you may need some help from a lawyer to do this).

To change your rules your group will need to follow a special process and pay a fee to CAV. These processes are covered in the resources below.

Resources for groups updating or drafting their own rules

The following resources have been drafted to assist groups to update or draft their own rules in line with the requirements of the AIR Act.

Fact Sheet: Step-by-step guide to changing your rules

Groups should read this fact sheet before proceeding with updating or drafting their own rules.  It provides step-by-step guidance on deciding what to do, and the processes to follow to change your rules.

Rules Checklist

This resource outlines the Scheduled Items required to be addressed in the rules of all incorporated associations.  It explains where these are items are new or changed from the Old Act, and provides guidance about how to meet the requirements of the AIR Act when addressing the items.

The Rules Checklist also explains some key areas where groups' existing rules may now be contrary to the AIR Act (meaning the inconsistent rules are invalid).

PilchConnect's Simple Rules

PilchConnect's Simple Rules have been designed as a starting point for groups looking to draft basic own rules.  They will not meet the needs of all incorporated associations.

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