Starting a Ratepayers Association

How to get organised.          Why Incorporate


from       Ratepayers Victoria Inc.
 

In reply to requests from aound the State, this information is to assist in setting up an association of ratepayers and residents.

For  the community to engage with our amalgamated Councils and to be heard & recognised by State government & bureaucracy we need to be organized. This information will enable you to form and incorporate a ratepayers/residents group. It only needs a group of six people.

Ratepayers Victoria Inc. was formed as a result of major inequities in rating in the Gannawarra Shire when the farming community  finally took their council to the Supreme Court. After that, more and more ratepayer groups began meeting together with the aim of discovering common problems and developing a common voice to directly represent ratepayers.

Realising that "in unity is strength" meetings were held in different venues and slowly the group became incorporated and began to have a recognised profile with the media.

Most members feel strongly about developing more open processes in local government as well as trying to curb Council extravagances. The aim is to ensure the best possible structures in democratic process to create the best possible future for our areas.

Any individual ratepayer can join Ratepayers Victoria Inc. but it improves our lobbying power if we can claim most  members are incorporated associations from across the State.

So form an association ASAP and unite through us.   

The information given below should be viewed as a guide only and should not be used as a substitute for professional legal advice.

What is incorporation?
Incorporation is a system of State Government registration that gives an association or community group certain legal advantages in return for accepting certain legal responsibilities. An incorporated association receives recognition as a legal entity separate from its members.

It offers some protection for office holders from any liabilities incurred by the group as long as it doesn't make a profit for its members. When we are fighting City Hall I understand this to mean that you, as a person, are not legally liable for inaccuracies in any (reasonable) statement that you make as an office holder of an Incorporated group or for inaccurate statements made by any member.

Whereas, if not incorporated, you personally are legally liable for anything sue-able done/said/written in the name of your group by you or by any member. To me this means that if politicians/councillors decide to slap on a writ (& they do) because you, or a group member, criticise them - they can only win the money held in your incorporated groups cash box (what money?) but if your group is not incorporated they take away your house, your farm, not to mention the kids & the budgerigar.

Incorporation is voluntary. Incorporated groups have to abide by relevant legislation (Read on for details).

Why Incorporate?
Not-for-profit community groups can be unregistered and unrecognised bodies acting under their own rules, or they can be formally recognised bodies with a legal personality of their own.

If you're the honorary treasurer of an unregistered organisation called Disneyland Ratepayers Assoc. and you hire premises for your organisation, you have to make the deal in your own name (even if acting as a trustee for Disneyland Ratepayers Assoc. If your organisation has registered as an Incorporation under the Associations Act and has a legal personality, you can make out the contract in the name of Disneyland Ratepayers Inc. and you don’t have to pay the fees from your own pocket (theoritically) .

There are advantages and disadvantages to each approach. The advantages of being an informal group are; that you don't have to pay the costs associated with incorporation and you don't have to comply with many of *the requirements nor fill out the forms. (*These are, in practice, not very onerous.)

You'll still have the obligation to act as a trustee for the organisation's purposes - but you can be more flexible about how you do it. If you're organising for a short-term activity this may be your best choice.

 

The disadvantage is that if anything goes wrong -if the office burns down, or if people fall over the mat and injure themselves and sue - it's possible that as a committee member you may be held personally liable. If the money in the groups cashbox won’t cover the payout you may have to pay for it yourself.

There can also be difficulties with opening bank accounts, problems with insurance, confusion about who owns what property. If you stop being a member, move away, die, - but your name is on the contracts there may be difficulties transferring your responsibilities to the new Treasurer.

If you're an incorporated association then Disneyland Ratepayers Assoc. Inc. will have limited liability. If someone falls over in the meeting rooms and sues - then you are not personally liable.

AND most foundations and most government departments will only fund incorporated organisations.

Formal structures
If you want legal status, you have a number of options - you can become

· a company limited by guarantee

· an incorporated association or society under the Victorian Associations Incorporation Act 1981 .

For most organisations, the choice is between company status and incorporation. Limited companies are highly regulated. Incorporated associations are lightly regulated. Setting up a company is complicated and expensive. Incorporating as an association is comparatively cheap and simple. Your best option is to become an incorporated association

How to Incorporate in Victoria
In order to be eligible to be an incorporated association in Victoria you must:


You need to prepare:

· A name for the association
You probably already have a name, but you now have to check the name you've chosen to make sure that it hasn't already been taken by another organisation. You will need to check the public register of names held by the Department of Consumer & Business Affairs (CBAV). You should also check the register of names held at the Australian Securities and Investments Commission.
You can do this on-line at http://www.consumer.vic.gov.au and at "http://www.asic.gov.au"

Not only can you not use a name if it's already been taken, you can't use it if it's a name that could be confused with an existing organisation. For that reason, it's sensible to have some names in reserve in case you're not allowed to use the one you want.
You then need to reserve the name with CBAV, on the correct form and with the correct fee (see below) - and you have to do this before you put in your application, not at the same time.

** Think about having a name that can easily form an acronym as this makes it easier for the media e.g.Assoc of Ratepayers & Residents of East Gippsland Inc. (ARREG)  - Assoc. of R&R of Latrobe City Inc. (ARRoLC) 

· The aims and objectives of the organisation
It's not so important for getting incorporation, but you should be aware that you need to consider your written objectives carefully.  An association can do almost anything, but don't be too restrictive or proscriptive. They're difficult to change.

** If you want to quickly build membership (a) keep your annual fee low e.g. $5.00 per household. (For any big expenditure such as newspaper ads. for a special campaign, donations can usually be raised.)

(b) Call a public meeting in a convenient location (issue a feisty MEDIA RELEASE to generate FREE publicity. Remember to put a CONTACT at the bottom for radio interviews. Also use your local community FM station - for interviews, etc. ) about some issue that is bothering ratepayers - & be prepared with forms, receipts and change box - to sign up members during the tea break (perhaps in the middle of the meeting.)

 

· A draft set of rules of the association (the CONSTITUTION)
You may have a constitution already. Whether you do or not, you need to look at the Model Rules for Associations set out in the Act. These aren't compulsory, and you don't have to adopt them as a whole, but you need to make sure that your constitution covers all the topics that are in the Model Rules -that is to say, if the quorum for the Committee of Management in the model rules is three you can still set your own Committee's quorum at six if you want to, but you can't do without a clause saying what the quorum is.
The Victorian Model Rules are available on-line at: http://www.consumer.vic.gov.au/cbav/fairattach.nsf/Images/assocmodel/$File/assocmodel.pdf

** Unless you have special reasons to want different procedures, it's a lot quicker and easier to adopt the Model Rules. Just add in your own name and objectives.

· Meeting
After you have all these pieces of paper you need to have a meeting of the members to approve the Incorporation and adopt the new constitution/rules.

Before the meeting identify people interested in being members and in being office bearers in the new association.

Type out the formal motions -
"I move that the [name of Association] be formed, and that the [name of Association] constitution and rules be those circulated at this meeting."
Moved &&&&&. Seconded &&&&&&

"I move that the [name of Association] incorporate as an incorporated association under the provisions of the Associations Incorporation Act." Moved &&&&&. Seconded &&&&&.

"I move that the [name of the new Association] be [first preference intended name], or if that name is not approved [second preference intended name], or if that name is not approved [third preference intended name]." Moved &&&&& Seconded &&&&&.

Print out copies of the Agenda, the Motions and the Constitution for as many as attend (or use an overhead projector).

You only need to have more than five members to form the Incorporated Association

At the meeting you must elect your officebearers, including a Public Officer (see below) and a person to make the application (this can be the same person as the Public Officer)

Give at least four weeks notice of the meeting by putting an ad. in a paper circulating across your area. Say in the ad. that you are intending to incorporate.

An application for incorporation
Once the meeting has passed the resolutions to incorporate and approved the assoc. rules, you lodge your application form with:

The Associations Incorporations Office
Level 2
452 Flinders St
Melbourne
PO Box 4567
Melbourne 3001
Tel. 9627 6200.

 

Include with your application:

· The application form. Its available on-line together with info. about fees to be paid from:- http://www.consumer.vic.gov.au/cbav/fairsite.nsf/pages/of_asso_assoc_fees

** note that the application form involves a statutory declaration.

· A copy of the rules/constitution adopted at the meeting, signed by the Public Officer,

with any differences between your constitution and the Victorian Model Rules highlighted

· A signed copy of your statement of purposes

· The lodgement fee of $ 60

If there are any funds carried over from the old unincorporated association, you have to submit copies of this too.

 When you lodge your application check out the timeline for approval.

** Follow up on progress if its taking longer than anticipated to be processed.

Public Officer
When a group is incorporated, one member must be appointed as Public Officer (usually the Treasurer.) The Public Officer is responsible for supplying the office of Consumer and Business Affairs with an annual return on the prescribed form.

Annual return
Before the Public Officer completes the association's annual return you will need the last financial year to have documented:

To fill in the return go to Form 9, Associations Incorporation Act 1981, Section 30(4)
The Public Officer must inform the office if:

· there's a change of Public Officer or a change of registered address

· there's a change of name

· the association is winding up

Incorporation - other duties
Once your application has been approved and you have received your certificate of incorporation then:-
Your name (including the word "Incorporated" or "Inc.") must appear on all your documents and publications.
You will need a common seal (available from any maker of rubber stamps).
You must have a registered address. This can be the address of the Public Officer.

 

Annual General Meeting
Incorporated associations must hold a general meeting every year within five months of the end of the financial year.

The meeting must be in the form prescribed in the constitution & has to submit a financial statement of the organisation's affairs.

If your organisation has gross receipts of more than $ 200,000 or assets of more than $ 500,000 (lucky, lucky you) your accounts must be audited.

Maybe (??) your Council, or a foundation, or a government department will help to resource or fund your incorporated organization.

 This should be the case because we are working for the best outcomes for the future of our community, state, nation.

If you discover any likely source of funding for citizens groups interested in monitoring the good governance of our Councils, please let us know so we can put in a submission / lobby them to fund all in the united group of  Ratepayers Victoria Inc..

If you intend applying to run a raffle to raise funds at a later stage, you may qualify if your aims include 'education' as a component.

Membership of Ratepayers Victoria is $25.

Contact : Linette Treasure,  Past President

RMB 2220 cowes 3922,Victoria