U3AAA to proceed with Incorporation
At a recent meeting of the U3A Alliance Australia all states voted to proceed with incorporation of the U3AAA as a Company Limited by Guarantee.
State representatives will be board members of the new incorporated body, and each state will have two representatives but only one vote. The Chair will be independent, as will the Secretariat.
U3A Network Queensland President, Gail Bonser said the Company Limited by Guarantee, as opposed to incorporation within a state, was the favoured option because incorporation within a state would limit the capacity for the incorporated body to do business outside that state.
“The newly incorporated body will also apply for ACNC registration and DGR status. A legal firm that deals with incorporation of NFP bodies recommended that a company limited by guarantee was the structure that would be favoured by the ACNC and ATO.
“There is an option for a body to incorporate within a state and then become registered with the ASIC but according to the material provided this is not necessarily the best option for groups seeking registration with the ACNC and DGR status. The material provided by the legal firm stressed that changing incorporation status can be a lengthy and expensive procedure.
“A further consideration was that the costs incurred in establishing incorporation within a state versus those of establishing a company limited by guarantee are roughly the same.”
The working party will now proceed with development of a constitution.