Associations Incorporation Act 1985

An incorporated association must not invite any person who is not a member of the association to invest or deposit money with the association, unless—

prior to or at the time of making any such invitation, the association issues to the person a disclosure statement in accordance with subsection (2); and

the Commission has approved the invitation.

For the purposes of this section, a disclosure statement must set out—

the name and principal objects of the association as set out in the rules of the association; and

the names, addresses and occupations of the members of the committee of the association; and

the total amount of deposits sought by the association;

the purposes for which the deposits (if obtained) will be applied;

the particulars of the security (if any) to be given in respect of the deposits; and

the rate of interest (if any) payable on the deposits;

the terms of repayment of the deposits; and

details of the association's—

current assets and liabilities; and

other assets and liabilities; and

net tangible assets, as at the association's last balance date and the amount of any operating profit and extraordinary items after income tax for the association's last financial year.

Where a person invests or deposits money with an association in response to an invitation made contrary to subsection (1), the transaction is void.

A person who invests or deposits money with an association pursuant to a transaction that is void by virtue of subsection (3) may recover that money from the association as a debt.

Where a disclosure statement—

includes any statement—

that is false; or

that is misleading in the form or context in which it is included;

omits any matter or thing that is required to be included, any person who authorised or caused the disclosure statement to be issued is guilty of an offence. Maximum penalty: $5 000.

It is a defence to a charge of an offence against subsection (5)—

that the statement or omission was immaterial; or

that he or she had reasonable grounds to believe, and did at the time of the issue of the disclosure statement believe, that the statement was not false or misleading or that the omission was immaterial; or

in the case of an omission—that the omission was inadvertent.

For the purposes of subsection (5) a statement is to be regarded as part of a disclosure statement if it is contained in any report or memorandum that appears on the face of, or is issued with, the disclosure statement, or is incorporated by reference in the disclosure statement, whether the reference occurs in the disclosure statement or in any other document.

The approval of the Commission under subsection (1) may be granted on such conditions as the Commission thinks fit and may, at any time, by instrument in writing, be varied or revoked by the Commission.

This section does not apply to an invitation by an association for the investment of money—

in a fund that was being maintained by the association on 1 March 1985; or

in accordance with an approval of the Commission given before the commencement of this section.