The full and formal name of this club is Banyule Bicycle User Group Inc, in which “Inc” stands for Incorporated – we are a not-for-profit incorporated association. Is this important; does it affect you as a member?

Being incorporated gives the club a formal legal structure. It becomes a “legal person”, a legal entity separate from its members which stays the same even as the membership changes. Some of the more important benefits of incorporation include:

Independent legal status  The club can do a number of things in its own name, such as opening a bank account; entering contracts; taking out public liability insurance and suing or being sued.

Legal protection   Members and office bearers are protected against personal liability for the organisation’s debts.

By contrast, an unincorporated association is far riskier for members, especially as their numbers increase. The association cannot enter contracts or agreements in its own name so individual members become personally liable in order to enter contracts, run bank accounts or take out insurance, etc. If things go awry these members bear the consequences.

Statutory obligations  An incorporated organisation must comply with requirements in the Victorian Associations Incorporation Reform Act 2012, which includes accounting and annual reporting requirements. These are not particularly onerous and annual registration fees are not expensive. There are requirements for resolving internal disputes: Banyule BUG uses the Victorian Model Rules For Incorporated Associations. Click here to read the club’s most recent copy.

For more detail, click here to visit the Consumer Affairs Victoria website.