A sporting club maybe an unincorporated association, or an association incorporated under the Associations Incorporation Act 1981 (Vic). Sporting clubs that are incorporated under the Act are recognised as a legal entity separate from its members. A incorporated association has its own corporate personality and can therefore enter into contracts; own land and other property; sue and be sued in its own right; accept gifts and bequests; and may borrow money. An incorporated association will adopt a statement of purpose and rules or as it is commonly referred to, a constitution. A constitution outlines the rules of governance, operational and administration processes, membership rights and obligations, and disciplinary procedures.

An unincorporated club has no legal status separate from its members and is not recognised in the eyes of the law. Unincorporated clubs put members at risk of litigation, as members and not the organisation, may be held liable for any damages caused to participants’ involved in organised activities.

Consumer and Business Affairs Victoria is the government department to which groups register to become an incorporated association. The Department has a useful information pack outlining a step-by-step guide to incorporation which can be found on the website http://www.consumer.vic.gov.au The website provides information on obligations of incorporation, annual general meetings, descriptions of committee of management roles, among other things.

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