Knowing your Constitution: Provisions for Wind-up/Dissolution

For Incorporated Associations (which includes almost all parent-managed OOSH services) your Constitution sets out how the assets of your Association are divided in the event of the wind-up of the Association.

This is relevant for all parent/community run OOSHs regardless of location.

While parent-managed OOSHs on public schools must take particular note (due to the threat imposed by the Department’s Policy Change – See SaveOOSH.com.au), other Incorporated Associations should also take this opportunity to familiarise themselves with their Constitution and make changes if needed.

Wind-up of an Association can happen for unforeseen circumstances, not just as a result of a Service losing a tender on a public school or transferring to the P&C.  When an Association winds-up, all of the leftover assets (including cash) need to go somewhere (after all, your organisation will no longer exist). Your Constitution may place restrictions on how you divide these leftover assets, which you may wish to change. We have seen examples of OOSH constitutions that restrict the ability of members to direct the assets in a way they see fit.

Did you know that any changes to your Constitution only take effect when they are lodged and approved by NSW Fair Trading? The document you may think of as your Constitution may have been updated over many years but never lodged, in which case those updates have no legal effect.

Click “Don’t delay – check your Constitution now” on the next page for important information.

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