THE Currajong Disability Services board has recently voted to change from an Incorporated Association to a Company Limited by Guarantee. This process is expected to take 10 weeks to complete.
What is the difference? An incorporated association is a type of incorporated legal structure made under the NSW Associations Incorporation Act 2009 (NSW). A company limited by guarantee (CLG) is another type of incorporated legal structure made under the Commonwealth Corporations Act 2001 (Cth). Both are suitable legal structures for not-for-profit groups but an Association revenue must not exceed $2 million in NSW.
Changing from an Inc. to a CLG – Transferring from an incorporated association to a CLG does not affect the identity of the organisation. Any contracts or agreements that the association had (including employment contracts) will continue to operate and be enforceable after the association’s transfer to a company. Any charity registration and charity tax concessions (including any DGR endorsement) are also capable of preservation during the transition.
For more information check out this link – https://www.nfplaw.org.au/sites/default/files/Incorporated_association_or_company_limited_by_guarantee_0_0_0.pdf
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