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Incorporation - what it all means
All Preschool or Playschool Parent Associations in the ACT are incorporated under the Associations Incorporation Act 1991 (ACT). As such, they are recognised as a legal entity separate from its members. Each of the Preschool or Playschool Parent Association Inc. has its own corporate personality and can therefore enter into contracts; own land and other property; sue and be sued in its own right; accept gifts and bequests; and may borrow money. Each Preschool or Playschool Parent Association have adopted a
statement of purpose and rules or as it is commonly
referred to, a constitution. A constitution outlines the rules of
governance, operational and administration processes, membership rights
and obligations, and disciplinary procedures. Click here to download a copy of a standard Preschool
Parent Association constitution. An unincorporated Preschool or Playschool Parent Association has no legal status
separate from its members and is not
recognised in the eyes of the law. Unincorporated groups put members at
risk of litigation, as members and not the organisation, may be held
liable for any damages caused to participants’ involved in organised
activities. The existence of a separate legal entity means that the association bears liability for its acts, therefore claims made against the association, either as debts or compensation for negligence, are answerable by the association and not the individual members. This means that the members of an incorporated association have limited liability. Members of an unincorporated association have unlimited liability, which means each person is personally liable for the debts and liabilities of the group. Limiting liability ensures members are only liable for the amounts each member owes the association in respect of their membership. Members of the management committee of an incorporated association have limited liability for the debts of an association as long as they follow accepted business and community standards. | |
| Frequently Asked Questions | |
| What are the main benefits of incorporating
as an association? | It allows your organisation to:
|
| As an Incorporated Association - what do we have to do? | The Office of Regulatory Services (ORS)provides a great deal of information about the process of being an incorporated organisation. Take the time to look at their website to obtain a copy of their Associations Kit (in a PDF format for downloading or printing to hard copy) or there is a HTML version for on-line viewing. |
| What are the obligations of Incorporated Associations? | Incorporation provide Preschool or Playschool Parent Associations with legal status and places certain obligations upon them,
including establishing and maintaining their public
record. Incorporated associations are required to lodge
with the ORS:
A number of documents must be lodged with the ORS following incorporation. Parent Association committees are advised to obtain a copy of the Associations Incorporation Act 1991 (usually referred to as "the Act") and the Associations Incorporation Regulations. Both of these documents may also be purchased from:
ACT Government Shopfront Further helpful information about the benefits, process and obligations of Incorporated Associations is freely available from the Office of Regulatory Services Office. Likewise, the CPS office is also a place to call if you need assistance in working out an issue. |
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© Canberra Preschool Society Inc. 2007