1. CHOICE OF INCORPORATION
ASSOCIATION OR
COMPANY LIMITED BY GUARANTEE
In Western Australia

2. IMPACT OF NEW LEGISLATION
The Associations Incorporation Act 2015 (WA)
Dramatically increases the compliance requirements for associations
ESPECIALLY IN FINANCIAL REPORTING
The Australian Charities and Not-for-profits Commission Act 2015
Dramatically increased the compliance requirements for charities
ESPECIALLY IN FINANCIAL REPORTING AND GOVERNANCE
ORGANISATION COMPLIES WITH THE ACNC REQUIREMENTS
WHICH SATISFY THE NEW ASSOCIATIONS ACT REQUIREMENTS
All associations need to update their rules to comply with the requirements under the new Associations Act and will have three years to do so, until 1 July 2019

3. DUTIES OF DIRECTORS ASSOCIATIONS ACT 2015 CORPORATIONS ACT 2000
Duty of care and diligence
Duty of good faith and proper purpose
Proper use of position
Proper use of information
Disclosure of material personal interest
Duty to avoid insolvent trading
Duty to keep proper books and records
Duty to safeguard confidential information

4. DIRECTORS DEFENCES ASSOCIATIONS ACT 2015 CORPORATIONS ACT 2000
business judgment
(a) makes the judgment in good faith for a proper purpose; and
(b) does not have a material personal interest in the subject matter of the judgment; and
(c) informs himself or herself about the subject matter of the judgment to the extent the officer reasonably believes to be appropriate; and
(d) rationally believes that the judgment is in the best interests of the association
Reasonable reliance on information or advice in good faith and independent assessment

5. Differences ASSOCIATION COMPANY LIMITED BY GUARANTEE
Must have six members
More than one person on management committee
May have one or more members
More than two directors
Difficult for subsidiary organisations
- Requires complex constitutional safeguards
Highly suitable for subsidiary organisations
Designed for local not for profits with few staff
Designed for larger organisations with more staff
Reporting to Department of Commerce and the ACNC
Reporting only to ACNC
unless registered under WA Charitable Collections Act
Operate only in WA unless an ARBN is obtained from ASIC
Operate anywhere in Australia
Penalties for non-compliance are lower than those companies limited by guarantee
The penalties for non-compliance with reporting requirements and directors’ duties are higher than for incorporated associations, and tend to be more strictly enforced