New law for governance of NSW associations

The NSW Parliament recently passed the Associations Incorporation Act 2009 (NSW), which replaces the Associations Incorporation Act 1984 and the Associations Incorporation Regulations 1989, and brings the provisions up to date with the modern business environment.
The NSW Department of Fair Trading is currently working on the regulations arising from the new law, which are expected to apply from late 2009.
According to law firm Lander & Rogers, the revised Act includes:

• objects of the Act which make it clear that it exists to provide for the registration and corporate governance of small-scale, non-commercial associations;
  
• new regulatory burdens for certain types of associations (determined by the income and assets of the association), including a requirement to undertake a yearly financial audit and lodge financial information at an annual meeting and with the Office of Fair Trading;
• a revision of the definition of 'pecuniary gain' so that if an association carries out activities for the purpose of securing financial gain for members or has capital invested in shares or property that is held by members, the association may be penalised, deregistered or involuntarily wound up;
• a requirement for an association's public officer and at least three committee members to be resident in Australia;
• a requirement for committee members to disclose conflicts of interest and abstain from voting where such a conflict of interest exists;
  
• the creation of a number of offences for fraudulent behaviour and misuse of confidential information by committee members that would be enforceable by the Commissioner for Fair Trading through disciplinary or legal action;
• provision for the Commissioner for Fair Trading to change the name of an association where it is inappropriate;
• provision for association meetings to be held across two or more venues using technology that allows members a reasonably opportunity to participate, and to expressly allow for a postal ballot as authorised by the association's constitution; and,
• the removal of an outdated requirement for association documents to be executed under seal.
  

The NSW Department of Fair Trading will conduct an information and education campaign when the regulations are finalised. NSW associations should ensure their constitution and other governance documents comply with the new legislation.

The new Act is accessible here.