The Law Handbook 2024

624 Section 6: Houses, communities and the road Associations Act. There are limited circumstances where this can occur (e.g. where themember is a not- for-profit entity and CAV approves the distribution); • provide its members with a benefit if they would be entitled to it notwithstanding their membership of the association; • compete for trophies or prizes in contests related to the association’s purpose; and • receive benefits through the enjoyment of facilities or services provided by the association for social, recreational, educational or other similar purposes. In addition, community organisations can participate in a number of activities typically associated with business. For example, an association can buy and sell goods and services where doing so is consistent with the association’s purpose. Annual general meetings An incorporated association must hold an AGM at least once in each calendar year. An association’s first AGM must be held within 18 months of incorporation. Subsequent AGMs must be held within five months after the end of the financial year. An association may apply to CAV for an extension of time for holding an AGM. Regardless of the formality or content of an AGM, the association’s financial statements must be presented to its members at the AGM. The financial statements must include the following information: • the income and expenditure of the association during and at the end of the last financial year; • the assets and liabilities of the association at the end of the last financial year; • details of any mortgages, charges and securities affecting any property owned by the association, as at the end of the last financial year; and • details of the above information concerning any trusts of which the association was the trustee during the last financial year. For a complete list of what needs to be included in an association’s financial statements, see CAV’s webpage titled ‘Financial statements and auditing requirements for incorporated associations’ (www. consumer.vic.gov.au) . At, or as soon as practicable after, the conclusion of the AGM, a committee member must certify, in the approved form, that: • the committee member attended the AGM and the date of the AGM; and • the financial statements were submitted to the members at the AGM. After each financial year, the secretary must lodge with the Registrar an annual statement for that year within one month after the date of the AGM. The annual statement must include the terms of any resolution passed at the AGM concerning the financial statements and the lodgement fee. In the case of a tier two association, the annual statement must also be accompanied by the financial statements of the association and either the reviewer’s report or the auditor’s report. In the case of a tier three association, the annual statement must also be accompanied by the financial statements of the association and the auditor’s report. Minutes of meetings Incorporated associations must prepare and keep accurate minutes of all meetings (including general meetings and committee meetings). Minutes are a formal written record of the matters discussed and the decisions made at a meeting. It is good practice to confirm the accuracy of the minutes at the next meeting. For more information, see www.nfplaw.org. au/free-resources/how-to-run-the-organisation/ holding-meetings . Legal requirements of meetings For more information about the legal requirements applicable to AGMs (and other meetings, such as management, sub-committees and annual and special general meetings), see www.nfplaw.org.au/free- resources/how-to-run-the-organisation/holding- meetings. Financial reporting Victorian incorporated associations that are registered as charities with the ACNC do not need to lodge an annual statement with CAV or pay the annual statement lodgement fee, provided that they continue to lodge an annual information statement with the ACNC for each financial year and follow the ACNC’s requirements. This exemption does not apply to charities that have been approved by the ACNC to withhold their financial details of finance