Bringing Associations Together To Boost Performance


Governology makes submission into NFP Inquiry

Governology, a law firm specialising in legal and governance advice to associations and charities, has recently made a submission to a Commonwealth Government inquiry into not for profits.

Some of the points in the submission included:

  • The disparate Associations Incorporation Acts in each state and territory add unnecessary complexity to the governance of associations. A more consistent national framework would be beneficial for the sector.
  • The process of converting from an incorporated association under a state or territory Associations Incorporation Act to become a company limited by guarantee (CLG) under the Corporations Act 2001 (Cth) can be an expensive and unclear process and should be improved.
  • The current laws regarding the closure of NFPs is ambiguous, posing particular challenges for CLGs under the Corporations Act 2001 (Cth) with modest assets. The distinction between winding up and cancellation or deregistration, two potential paths for closing an NFP, is often unclear.

Kathy Nguyen, Senior Lawyer at Governology, believes some straightforward changes would make a major difference. “We support the Commonwealth Governance inquiry and Governology has been pleased to make a submission. Based upon our years of practical experience, we believe there are some easy wins for association and charity governance by reviewing the step-by-step processes in these uncontroversial areas” says Ms Nguyen.

Kathy Nguyen can be contacted by email at

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