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neobyte
WiFi Extraordinaire
User
| Posts: 96 |   |
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Formation of BX WIFI Community Group |
- 2007/06/06 06:20 |
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#1 |
What is an association?
It is common in our community for groups of people to come together to pursue a common interest. This may be to engage in a hobby, social or cultural exchange or to provide a community benefit. These groups are loosely called 'associations'.
Associations of people do not have to be incorporated, they may remain, simply, as an association of people and they are not subject to any laws to govern how they are to be organised or what name they have. There are laws that may affect their activities and the liability of the association or its members.
What are the benefits of incorporation as an association?The purpose of the Act is to provide non-commercial organisations, particularly community groups and clubs, a simple, inexpensive mechanism to gain an independent legal identity.
As a legal body in its own right, an incorporated association can:
enter into and enforce contracts including the power to hold, acquire and deal with property,
sue or be sued, and
continue regardless of changes to membership.
The existence of a separate legal entity means that the association bears liability for its acts. Briefly, this means that claims made against an association, either as debts or compensation for negligence, are answerable by the association and not the individual members.
Members of an incorporated association have limited liability. In general terms, this means that they are only liable for the amounts each member owes the association in respect of their membership. For most associations this means the fees or subscriptions due to the association. Members of the management committee of an association also have limited liability for the debts of an association as long as they follow accepted business and community standards.
Groups seeking government grants will frequently find that it is a condition of their grant that they be incorporated.
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