If you are involved in managing a Surf Life Saving Club (SLSC), you must understand your SLSC incorporation and compliance responsibilities. Compliance is about making sure that the SLSC operates as required under its Constitution and the law.
The first time an SLSC opens in NSW, it needs to register as an Incorporated Association with NSW Fair Trading to carry on business in NSW under the Associations Incorporation Act 2009.
An SLSC needs to register as an Incorporated Association so that it has its own legal identity (a ‘legal person’) separate from its members. Incorporation provides members, and importantly the club executive, protection in legal transactions and allows the SLSC to operate even though its members may change. As an incorporated association, the SLSC may also enter and enforce contracts in its name, open a bank account, borrow money, receive a bequest or gift from a will and hold, acquire or deal with land and property in its name. It can also indemnify its office-bearers and members, which provides personal protection to the extent that decisions or actions are not criminally wilful or negligent.
As a legal entity, an SLSC can also sue or be sued. The SLSC is responsible for any claims made against the SLSC, either as debts or compensation for negligence. At the same time, members are liable only for any debts they owe the SLSC relating to their membership, e.g., their membership fees. Club Management Team members and other office-bearers also have limited liability for the SLSC’s debts, if they follow accepted business and community standards. Office-bearers should always seek their own legal advice regarding indemnification and insurances that cover them personally.
An SLSC cannot distribute any profits among its members. They must be used for the objectives of the SLSC as stated in its Constitution. See the SLSC Finances section of this SLSC guide for more information about the financial implications of incorporation.
By registering the SLSC with NSW Fair Trading as an Incorporated Association, it receives the legal benefits of incorporation and commits to meeting its incorporation obligations to:
- Act under all the rules of NSW legislation
- Have a committee that manages the association (e.g., Club Management Team)
- Have a common seal (e.g., SLSC logo)
- Have a minimum of five members (but no maximum limit)
- Have a public officer as per the NSW Fair Trading Public Officer website
- Have a registered office in its state of incorporation (e.g., registered SLSC venue/address)
- Have registers of members and all committee members (e.g., SLSC member and officer details in SurfGuard)
- Hold an annual general meeting once a year (e.g., SLSC AGM)
- Keep minutes of all committee and general meetings (e.g., records of meeting minutes)
- Keep proper accounting records (electronic and/or hard copy)
- Lodge an annual statement every year (e.g., SLSC Annual Report).
For more information about running or starting an Incorporation, refer to the NSW Fair Trading Associations website. For information about the NSW associations Incorporation Act 2009, refer to the FAQ document found here: Q and A: NSW Associations Incorporation Act 2009