Its strongly recommended that clubs are incorporated as a legal entity (ie. as an incorporated association or a company) and compliant with all that is required by being incorporated.
Incorporation provides a Club with a legal identity distinct from its members, therefore relieving the members of the committee and the Club from liability for authorised acts of the Club. It provides legal protection for Clubs; however, it does not prevent actions for negligence against individuals.
There are a number of risks if your Club is not incorporated.
The law does not recognise a club (or association) as existing in a legal sense unless it is incorporated, and legal rights and obligations can fall on to individual members.
If a club is not incorporated (ie. as an incorporated association or a company), they are not covered for insurance such as Public Liability or Club Management Liability.
Public Liability Insurance covers a range of financial risks such as club’s legal costs or other costs associated with legal proceedings. Club Management Liability Insurance covers a range of financial risks for a club’s directors and officers such as costs associated with legal proceedings for:
- Negligence, slander, defamation, discrimination, etc.
- Employment related matters (unfair dismissal)
Club Management Liability can also cover some of the costs associated with an employees or officers stealing funds from the club.
How to become incorporated:
Each state/territory will have different process for incorporations and fees. Please visit the relevant state/territory state website for more information.
NSW – Department of Fair Trading
ACT – Access Canberra
WA – Government of Western Australia
NT – NT.GOV.AU
SA – SA.GOV.AU
QLD – Queensland Government
Vic – Consumer Affairs Victoria
Tas – Tasmanian Government