Rules for Incorporated Associations
- The owners of an incorporated association must adopt a set of rules to serve as a constitution for their company. An incorporated association is a type of a business entity available in many countries, but is mostly found in Australia. The Australian government has established the incorporated association as a formal business entity apart from the standard corporation or public company. Incorporated associations are membership-based organizations and are often dedicated to the practice or propagation of recreational activities, like team sports or swimming.
- The purpose of an incorporated association's rules are to clearly establish the management and organizational structure of the company. This set of rules defines the responsibility and authority of employees and company officers. The rules serve the same purpose as a corporate charter or an operating agreement. The Australian government requires every incorporated association to submit a set of rules along with its registration application to the department of commerce.
- The founders of an incorporated association have a degree of freedom in composing the details and contents of the rules, but they must include certain information required by the Australian government. The rules must describe the registration process for new members of the association, including the qualifications and fees for the application process. They should also include the terms upon which a member's subscription to the organization will be terminated or suspended.
- Model rules are a template set of rules designed specifically for incorporated associations. These rules are available on the Australian Department of Commerce website. An incorporated association may choose to use all or part of these rules as replacements or additions to their own. A company may fully adopt the model rules, insert or alter details, or reject them entirely. The model rules provide all of the content required by the Australian government for incorporated associations. At the very least, the model rules provide a solid template for designing a custom set of rules.