THE CONSTITUTION OF AUSTRALIAN CHINA EDUCATION FOUNDATION
The name of the incorporated Foundation is Australian China Education Foundation Incorporated.
Under section 23 of the Act, the name of the Foundation and its registration number must appear on all its business documents.
The purposes of the Foundation are—
- To improve opportunities for children in poverty-stricken areas of China to fulfil their education needs through one-to-one sponsorship of the child;
- To improve educational infrastructure and resources for these areas
- To inspire and equip children and teachers through educational exchange activities for a better tomorrow.
- Meanwhile to participate in education related charity activities in Australia mainstream community and enhance educational and cultural exchanges and interactions between China and Australia.
The financial year of the Foundation is each period of 12 months ending on 30 June.
In these Rules—
absolute majority, of the Committee, means a majority of the committee members currently holding office and entitled to vote at the time (as distinct from a majority of committee members present at a committee meeting);
associate member means a member referred to in rule 14(1);
Chairperson, of a general meeting or committee meeting, means the person chairing the meeting as required under rule 46;
The Constitution means this Constitution of Australian China Education Foundation
Committee means the Committee having management of the business of the Foundation;
committee meeting means a meeting of the Committee held in accordance with these Rules;
committee member means a member of the Committee elected or appointed under Division 3 of Part 5;
Executive committee means the organising and decision-making body before the first general meeting of the foundation
disciplinary appeal meeting means a meeting of the members of the Foundation convened under rule 23(3);
disciplinary meeting means a meeting of the Committee convened for the purposes of rule 22;
disciplinary subcommittee means the subcommittee appointed under rule 20;
financial year means the 12 month period specified in rule 3;
general meeting means a general meeting of the members of the Foundation convened in accordance with Part 4 and includes an annual general meeting, a special general meeting and a disciplinary appeal meeting;
member means a member of the Foundation;
member entitled to vote means a member who under rule 13(2) is entitled to vote at a general meeting;
special resolution means a resolution that requires not less than three-quarters of the members voting at a general meeting, whether in person or by proxy, to vote in favour of the resolution;
the Act means the Foundations Incorporation Reform Act 2012 and includes any regulations made under that Act;
the Registrar means the Registrar of Incorporated Foundations.
5 Language Version
This is the English version of the Constitution of Australian China Education Foundation.
(1) Subject to the Act, the Foundation has power to do all things incidental or conducive to achieve its purposes.
(2) Without limiting subrule (1), the Foundation may—
(a) acquire, hold and dispose of real or personal property;
(b) open and operate accounts with financial institutions;
(c) invest its money in any security in which trust monies may lawfully be invested;
(d) raise and borrow money on any terms and in any manner as it thinks fit;
(e) secure the repayment of money raised or borrowed, or the payment of a debt or liability;
(f) appoint agents to transact business on its behalf;
(g) enter into any other contract it considers necessary or desirable.
(3) The Foundation may only exercise its powers and use its income and assets (including any surplus) for its purposes.
(1) The Foundation must not distribute any surplus, income or assets directly or indirectly to its members.
(2) Subrule (1) does not prevent the Foundation from paying a member—
(a) reimbursement for expenses properly incurred by the member; or
(b) for goods or services provided by the member—
if this is done in good faith on terms no more favourable than if the member was not a member.
The Foundation must have at least 5 members.
9 Who is eligible to be a member
Any person who supports the purposes of the Foundation is eligible for membership.
(1) To apply to become a member of the Foundation, a person must apply to a committee member stating that the person—
(a) wishes to become a member of the Foundation; and
(b) supports the purposes of the Foundation; and
(c) agrees to comply with these Rules; and
- d) agrees to pay annual membership fee on time.
11 The application must be signed by the applicant
12 There is no joining fee required
(1) At each annual general meeting, the Association must determine—
(a) the amount of the annual membership (if any) for the following financial year; and
(b) the date for payment of the annual membership.
(2) The ordinary annual membership fee for the year of 2015-16 is $40 per member, payable before the end of February each year.
(3) The lifetime membership is $500 to be paid in lump sum.
(4) Any new member who joins after the end of February must, for that financial year, pay a fee equal to the full annual membership.
(5) The annual membership fee is determined from time to time by the Association.
(6) The annual membership fee payment is voluntary by members.
(7) Members who donated for foundation’s project or volunteer members during the year will be waived for current year’s membership fee.
14 General rights of members
(1) A member of the Foundation who is entitled to vote has the right—
(a) to receive notice of general meetings and of proposed special resolutions in the manner and time prescribed by these Rules; and
(b) to submit items of business for consideration at a general meeting; and
(c) to attend and be heard at general meetings; and
(d) to vote at a general meeting; and
(e) to have the right to elect and to be elected as executive committee member
(f) to assume various volunteer responsibilities and partake in activities of the Foundation.
(2) A member is entitled to vote if—
(a) the member is a member other than an associate member; and
(b) more than 10 business days have passed since he or she became a member of the Foundation; and
(c) the member’s membership rights are not suspended for any reason.
The rights of a member are not transferable and end when membership ceases.
(1) The membership of a person ceases on resignation, expulsion or death.
(2) If a person ceases to be a member of the Foundation, the Secretary must, as soon as practicable, enter the date the person ceased to be a member in the register of members.
(1) A member may resign by notice in writing given to the Association.
2) A member is taken to have resigned if—
(a) the member’s annual subscription is more than 12 months in arrears; or
(b) After providing the member with reasonable written notice and an opportunity to be heard either orally or in writing, upon a determination by the executive committee that the member has engaged in conduct materially and seriously prejudicial to the interests or purposes of the Foundation.
The Foundation may take disciplinary action against a member in accordance with this Division if it is determined that the member—
(a) has failed to comply with these Rules; or
(b) refuses to support the purposes of the Foundation; or
(c) has engaged in conduct prejudicial to the Foundation.
(1) If the Committee is satisfied that there are sufficient grounds for taking disciplinary action against a member, the Committee must appoint a disciplinary subcommittee to hear the matter and determine what action, if any, to take against the member.
(2) The members of the disciplinary subcommittee—
(a) may be Committee members, members of the Foundation or anyone else; but
(b) must not be biased against, or in favour of, the member concerned.
(1) Before disciplinary action is taken against a member, the Secretary must give written notice to the member—
(a) stating that the Foundation proposes to take disciplinary action against the member; and
(b) stating the grounds for the proposed disciplinary action; and
(c) specifying the date, place and time of the meeting at which the disciplinary subcommittee intends to consider the disciplinary action (the disciplinary meeting); and
(d) advising the member that he or she may do one or both of the following—
(i) attend the disciplinary meeting and address the disciplinary subcommittee at that meeting;
(ii) give a written statement to the disciplinary subcommittee at any time before the disciplinary meeting; and
(e) setting out the member’s appeal rights under rule 22.
(2) The notice must be given no earlier than 28 days, and no later than 14 days, before the disciplinary meeting is held.
(1) At the disciplinary meeting, the disciplinary subcommittee must—
(a) give the member an opportunity to be heard; and
(b) consider any written statement submitted by the member.
(2) After complying with subrule (1), the disciplinary subcommittee may—
(a) take no further action against the member; or
(b) subject to subrule (3)—
(i) reprimand the member; or
(ii) suspend the membership rights of the member for a specified period; or
(iii) expel the member from the Foundation.
(3) The disciplinary subcommittee may not fine the member.
(4) The suspension of membership rights or the expulsion of a member by the disciplinary subcommittee under this rule takes effect immediately after the vote is passed.
(1) A person whose membership rights have been suspended or who has been expelled from the Foundation under rule 21 may give notice to the effect that he or she wishes to appeal against the suspension or expulsion.
(2) The notice must be in writing and given—
(a) to the disciplinary subcommittee immediately after the vote to suspend or expel the person is taken; or
(b) to the Secretary not later than 48 hours after the vote.
(3) If a person has given notice under subrule (2), a disciplinary appeal meeting must be convened by the Committee as soon as practicable, but in any event not later than 21 days, after the notice is received.
(4) Notice of the disciplinary appeal meeting must be given to each member of the Foundation who is entitled to vote as soon as practicable and must—
(a) specify the date, time and place of the meeting; and
(i) the name of the person against whom the disciplinary action has been taken; and
(ii) the grounds for taking that action; and
(iii) that at the disciplinary appeal meeting the members present must vote on whether the decision to suspend or expel the person should be upheld or revoked.
(1) At a disciplinary appeal meeting—
(a) no business other than the question of the appeal may be conducted; and
(b) the Committee must state the grounds for suspending or expelling the member and the reasons for taking that action; and
(c) the person whose membership has been suspended or who has been expelled must be given an opportunity to be heard.
(2) After complying with subrule (1), the members present and entitled to vote at the meeting must vote by secret ballot on the question of whether the decision to suspend or expel the person should be upheld or revoked.
(3) A member may not vote by proxy at the meeting.
(4) The decision is upheld if not less than three quarters of the members voting at the meeting vote in favour of the decision.
(1) The grievance procedure set out in this Division applies to disputes under these Rules between—
(a) a member and another member;
(b) a member and the Committee;
(c) a member and the Association.
(2) A member must not initiate a grievance procedure in relation to a matter that is the subject of a disciplinary procedure until the disciplinary procedure has been completed.
The parties to a dispute must attempt to resolve the dispute between themselves within 14 days of the dispute coming to the attention of each party.
(1) If the parties to a dispute are unable to resolve the dispute between themselves within the time required by rule 25, the parties must within 10 days—
(a) notify the Committee of the dispute; and
(b) agree to or request the appointment of a mediator; and
(c) attempt in good faith to settle the dispute by mediation.
(2) The mediator must be—
(a) a person chosen by agreement between the parties; or
(b) in the absence of agreement—
(i) if the dispute is between a member and another member—a person appointed by the Committee; or
(ii) if the dispute is between a member and the Committee or the Association—a person appointed or employed by the Dispute Settlement Centre of Victoria.
(3) A mediator appointed by the Committee may be a member or former member of the Association but in any case must not be a person who—
(a) has a personal interest in the dispute; or
(b) is biased in favour of or against any party.
(1) The mediator to the dispute, in conducting the mediation, must—
(a) give each party every opportunity to be heard; and
(b) allow due consideration by all parties of any written statement submitted by any party; and
(c) ensure that natural justice is accorded to the parties throughout the mediation process.
(2) The mediator must not determine the dispute.
If the mediation process does not resolve the dispute, the parties may seek to resolve the dispute in accordance with the Act or otherwise at law.
(1) The Committee must convene an annual general meeting of the Association to be held within 5 months after the end of each financial year.
(2) Despite subrule (1), the Association may hold its first annual general meeting at any time within 18 months after its incorporation.
(3) The Committee may determine the date, time and place of the annual general meeting.
(4) The ordinary business of the annual general meeting is as follows—
(a) to confirm the minutes of the previous annual general meeting and of any special general meeting held since then;
(b) to receive and consider—
(i) the annual report of the Committee on the activities of the Association during the preceding financial year; and
(ii) the financial statements of the Association for the preceding financial year submitted by the Committee in accordance with Part 6 of the Act;
(c) to elect the members of the Committee;
(d) to confirm or vary the amounts (if any) of the annual subscription and joining fee.
(5) The Constitution may be altered, amended or replaced at the annual general meeting.
(6) The annual general meeting may also conduct any other business of which notice has been given in accordance with these Rules.
(1) No business may be conducted at a general meeting unless a quorum of members is present.
(2) The quorum for a general meeting is the presence (physically, by proxy or as allowed under rule 53) of 10% of the members entitled to vote.
(1) On any question arising at a general meeting—
(a) subject to subrule (3), each member who is entitled to vote has one vote; and
(b) members may vote personally or by proxy; and
(c) except in the case of a special resolution, the question must be decided on a majority of votes.
(2) If votes are divided equally on a question, the Chairperson of the meeting has a second or casting vote.
(3) If the question is whether or not to confirm the minutes of a previous meeting, only members who were present at that meeting may vote.
(4) This rule does not apply to a vote at a disciplinary appeal meeting conducted under rule 23.
A special resolution is passed if not less than three quarters of the members voting at a general meeting (whether in person or by proxy) vote in favour of the resolution.
(1) The business of the Foundation must be managed by or under the direction of an Executive Committee.
(2) The Executive Committee may exercise all the powers of the Foundation except those powers that these Rules or the Act require to be exercised by general meetings of the members of the Foundation.
(3) The Executive Committee may—
(a) appoint and remove staff;
(b) establish subExecutive Committees consisting of members with terms of reference it considers appropriate.
(1) The Executive Committee may delegate to a member of the Executive Committee, a subcommittee or staff, any of its powers and functions other than—
(a) this power of delegation; or
(b) a duty imposed on the Executive Committee by the Act or any other law.
(2) The delegation must be in writing and may be subject to the conditions and limitations the Executive Committee considers appropriate.
(3) The Executive Committee may, in writing, revoke a delegation wholly or in part.
(1) The Executive Committee consists of—
(a) a President; and
(b) an Executive Vice-President who is also the Secretary; and
(c) a Treasurer; and
(d) two vice-presidents; and
(e) ordinary members (if any) elected under rule 44.
(f) Any increase or decrease in the number of executive committee members shall be determined by majority vote of the members presented at the meeting.
(2) Each member of the executive committee shall be responsible for one or more duties for the Foundation, and shall not receive salaries for their services
(3) The executive committee is responsible for six departments including financial, administrative, Membership development, promotion, marketing, and China affairs departments. All departments shall work cooperatively.
(1) As soon as practicable after being elected or appointed to the Executive Committee, each Executive Committee member must become familiar with these Rules and the Act.
(2) The Executive Committee is collectively responsible for ensuring that the Foundation complies with the Act and that individual members of the Executive Committee comply with these Rules.
(3) Executive Committee members must exercise their powers and discharge their duties with reasonable care and diligence.
(4) Executive Committee members must exercise their powers and discharge their duties—
(a) in good faith in the best interests of the Foundation; and
(b) for a proper purpose.
(5) Executive Committee members and former committee members must not make improper use of—
(a) their position; or
(b) information acquired by virtue of holding their position—
so as to gain an advantage for themselves or any other person or to cause detriment to the Foundation.
(6) In addition to any duties imposed by these Rules, an Executive Committee member must perform any other duties imposed from time to time by resolution at a general meeting.
(1) Subject to subrule (2), the President or, in the President’s absence, the Executive Vice-President is the Chairperson for any general meetings and for any committee meetings.
(2) If the President and the Executive Vice-President are both absent, or are unable to preside, the Chairperson of the meeting must be—
(a) in the case of a general meeting—a member elected by the other members present; or
(b) in the case of a committee meeting—a committee member elected by the other committee members present.
(3) After having served two terms, retiring President and Vice-president can be eligible, subject to the approval of the Executive Committee, for consideration as Honorary President of the Foundation as an acknowledgement of their significant volunteer work. Honorary Presidents are not member of the Executive Committee.
(1) The Secretary must perform any duty or function required under the Act to be performed by the secretary of an incorporated Foundation.
(2) The Secretary must—
(a) maintain the register of members in accordance with rule 18; and
(b) keep custody of the common seal (if any) of the Foundation, all books, documents and securities of the Foundation; and
(c) subject to the Act and these Rules, provide members with access to the register of members, the minutes of general meetings and other books and documents; and
(d) perform any other duty or function imposed on the Secretary by these Rules.
(1) The Treasurer must—
(a) receive all moneys paid to or received by the Foundation and issue receipts for those moneys in the name of the Foundation; and
(b) ensure that all moneys received are paid into the account of the Foundation within 5 working days after receipt; and
(c) make any payments authorised by the Committee or by a general meeting of the Foundation from the Foundation’s funds; and
(d) ensure cheques are signed by at least 2 committee members.
(2) The Treasurer must—
(a) ensure that the financial records of the Foundation are kept in accordance with the Act; and
(b) coordinate the preparation of the financial statements of the Foundation and their certification by the Committee prior to their submission to the annual general meeting of the Foundation.
(3) The Treasurer must ensure that at least one other committee member has access to the accounts and financial records of the Foundation.
A member is eligible to be elected or appointed as a committee member if the member—
(a) is 18 years or over; and
(b) is entitled to vote at a general meeting.
(1) This rule applies to—
(a) the first annual general meeting of the Foundation after its incorporation; or
(b) any subsequent annual general meeting of the Foundation, after the annual report and financial statements of the Foundation have been received.
(2) The Chairperson of the meeting must declare all positions on the Committee vacant and hold elections for those positions in accordance with rules 42 to 45.
(1) Prior to the election of each position, the Chairperson of the meeting must call for nominations to fill that position.
(2) An eligible member of the Foundation may—
(a) nominate himself or herself; or
(b) with the member’s consent, be nominated by another member.
(3) A member who is nominated for a position and fails to be elected to that position may be nominated for any other position for which an election is yet to be held.
(1) At every three years at the general meeting, separate elections must be held for the committee members.
(2) Within the elected members of the committee, the members will determine the position for
(1) The triennial general meeting must by resolution decide the number of ordinary members of the Committee (if any) it wishes to hold office for the next term.
(2) A single election may be held to fill all of those positions.
(3) If the number of members nominated for the position of ordinary committee member is less than or equal to the number to be elected, the Chairperson of the meeting must declare each of those members to be elected to the position.
(4) If the number of members nominated exceeds the number to be elected, a ballot must be held in accordance with rule 45.
(1) If a ballot is required for the election for a position, the Chairperson of the meeting must appoint a member to act as returning officer to conduct the ballot.
(2) The returning officer must not be a member nominated for the position.
(3) Before the ballot is taken, each candidate may make a short speech in support of his or her election.
(4) The election must be by secret ballot.
(5) The returning officer must give a blank piece of paper to—
(a) each member present in person; and
(b) each proxy appointed by a member.
(6) If the ballot is for a single position, the voter must write on the ballot paper the name of the candidate for whom they wish to vote.
(7) If the ballot is for more than one position—
(a) the voter must write on the ballot paper the name of each candidate for whom they wish to vote;
(b) the voter must not write the names of more candidates than the number to be elected.
(8) Ballot papers that do not comply with subrule (7)(b) are not to be counted.
(9) Each ballot paper on which the name of a candidate has been written counts as one vote for that candidate.
(10) The returning officer must declare elected the candidate or, in the case of an election for more than one position, the candidates who received the most votes.
(11) If the returning officer is unable to declare the result of an election under subrule (10) because 2 or more candidates received the same number of votes, the returning officer must—
(a) conduct a further election for the position in accordance with subrules (4) to (10) to decide which of those candidates is to be elected; or
(b) with the agreement of those candidates, decide by lot which of them is to be elected.
(1) Subject to subrule (3) and rule 47, a committee member holds office for three years until the positions of the Committee are declared vacant at the next triennial general meeting.
(2) A committee member may be re-elected.
(3) A general meeting of the Foundation may—
(a) by special resolution remove a committee member from office; and
(b) elect an eligible member of the Foundation to fill the vacant position in accordance with this Division.
(4) A member who is the subject of a proposed special resolution under subrule (3)(a) may make representations in writing to the Secretary or President of the Foundation (not exceeding a reasonable length) and may request that the representations be provided to the members of the Foundation.
(5) The Secretary or the President may give a copy of the representations to each member of the Foundation or, if they are not so given, the member may require that they be read out at the meeting at which the special resolution is to be proposed.
(1) A committee member may resign from the Committee by written notice addressed to the Committee.
(2) Any such resignation shall take effect at the date of the next meeting of executive committee, when the position shall be filled by electing a new committee member.
(1) The Committee may appoint an eligible member of the Foundation to fill a position on the Committee that—
(a) has become vacant under rule 47; or
(b) was not filled by election at the last annual general meeting.
(2) If the position of Secretary becomes vacant, the Committee must appoint a member to the position within 14 days after the vacancy arises.
(3) Rule 46 applies to any committee member appointed by the Committee under subrule (1) or (2).
(4) The Committee may continue to act despite any vacancy in its membership.
(1) The Committee must meet at least once every two months in each year at the dates, times and places determined by the Committee.
(2) The date, time and place of the first committee meeting must be determined by the members of the Committee as soon as practicable after the annual general meeting of the Foundation at which the members of the Committee were elected.
(3) Special committee meetings may be convened by the President or by any 4 members of the Committee.
(4) Should an executive committee member be absent up to three committee meetings in a year without providing reasonable grounds to the President, it is considered that the member has effectively resigned from the position as an executive committee.
(1) Notice of each committee meeting must be given to each committee member no later than 7 days before the date of the meeting.
(2) Notice may be given of more than one committee meeting at the same time.
(3) The notice must state the date, time and place of the meeting.
(4) If a special committee meeting is convened, the notice must include the general nature of the business to be conducted.
(5) The only business that may be conducted at the meeting is the business for which the meeting is convened.
(1) In cases of urgency, a meeting can be held without notice being given in accordance with rule 50 provided that as much notice as practicable is given to each committee member by the quickest means practicable.
(2) Any resolution made at the meeting must be passed by an absolute majority of the Committee.
(3) The only business that may be conducted at an urgent meeting is the business for which the meeting is convened.
(1) The procedure to be followed at a meeting of a Committee must be determined from time to time by the Committee.
(2) The order of business may be determined by the members present at the meeting.
(1) A committee member who is not physically present at a committee meeting may participate in the meeting by the use of technology that allows that committee member and the committee members present at the meeting to clearly and simultaneously communicate with each other.
(2) For the purposes of this Part, a committee member participating in a committee meeting as permitted under subrule (1) is taken to be present at the meeting and, if the member votes at the meeting, is taken to have voted in person.
(1) No business may be conducted at a Committee meeting unless a quorum is present.
(2) The quorum for a committee meeting is the presence (in person or as allowed under rule 53) of a majority of the committee members holding office.
(3) If a quorum is not present within 30 minutes after the notified commencement time of a committee meeting—
(a) in the case of a special meeting—the meeting lapses;
(b) in any other case—the meeting must be adjourned to a date no later than 14 days after the adjournment and notice of the time, date and place to which the meeting is adjourned must be given in accordance with rule 50.
(1) On any question arising at a committee meeting, each committee member present at the meeting has one vote.
(2) A motion is carried if a majority of committee members present at the meeting vote in favour of the motion.
(3) Subrule (2) does not apply to any motion or question which is required by these Rules to be passed by an absolute majority of the Committee.
(4) If votes are divided equally on a question, the Chairperson of the meeting has a second or casting vote.
(5) Voting by proxy is not permitted.
(1) A committee member who has a material personal interest in a matter being considered at a committee meeting must disclose the nature and extent of that interest to the Committee.
(2) The member—
(a) must not be present while the matter is being considered at the meeting; and
(b) must not vote on the matter.
(1) The Committee must ensure that minutes are taken and kept of each committee meeting.
(2) The minutes must record the following—
(a) the names of the members in attendance at the meeting;
(b) the business considered at the meeting;
(c) any resolution on which a vote is taken and the result of the vote;
(d) any material personal interest disclosed under rule 56.
(1) The Committee may grant a committee member leave of absence from committee meetings for a period not exceeding 3 months.
(2) The Committee must not grant leave of absence retrospectively unless it is satisfied that it was not feasible for the committee member to seek the leave in advance.
(1) The funds of the Foundation may be derived from joining fees, annual subscriptions, donations, fund-raising activities, grants, interest and any other sources approved by the Committee.
(1) The Foundation collects and manages donations on the principle of open and transparency.
(2) Subject to any restrictions imposed by a general meeting of the Foundation, the Committee may approve expenditure on behalf of the Foundation. The funds shall be earmarked for the educational purposes determined by the Executive Committee. The audited report on the revenues and expenditures of each program shall be released on the Foundation’s website at the end of every financial year to be accountable to donors and members. The costs of daily operations, the promotion and marketing expenditures, the transportation and accommodation expenditures, and other administration expenditures shall be covered by membership fees and other specified donations.
(3) The Foundation must open an account with a financial institution from which all expenditure of the Foundation is made and into which all of the Foundation’s revenue is deposited.
(4) The Committee may authorise the Treasurer to expend funds on behalf of the Foundation (including by electronic funds transfer) up to a specified limit without requiring approval from the Committee for each item on which the funds are expended.
(5) All cheques, drafts, bills of exchange, promissory notes and other negotiable instruments must be signed by 2 committee members.
(6) With the approval of the Committee, the Treasurer may maintain a cash float provided that all money paid from or paid into the float is accurately recorded at the time of the transaction.
(1) The Foundation may be wound up voluntarily by special resolution.
(2) Winding Up Clause
Where the Foundation is endorsed as a deductible gift recipient (DGR) under Division 30 of the Income Tax Assessment Act 1997 (ITAA) and in the event that the Foundation is wound up or dissolved, any surplus assets of the Foundation must be transferred to another organisation with similar purposes approved by special resolution and that is not carried on for the purposes of profit or gain to its members, and that is also endorsed by the Commissioner of Taxation as a public benevolent institution under Item 4.1.1 of section 30-45 of the ITAA provided that any surplus assets that are:
- gifts of money or property to the Foundation for its principal purposes;
- deductible contributions described in item 7 or 8 of the table in section 30-15 of the ITAA; and
- money received by the Foundation because of such gifts or deductible contributions;
may only be transferred to another organisation that is also endorsed as a deductible gift recipient under Division 30 of the ITAA.
(3) Revocation clause
Where the Foundation is endorsed as a deductible gift recipient under Division 30 of the Income Tax Assessment Act 1997 (ITAA) and in the event that such endorsement is revoked by the Commissioner of Taxation any surplus assets of the company that are:
- gifts of money or property to the Foundation for its principal purposes;
- deductible contributions described in item 7 or 8 of the table in section 30-15 of the ITAA; and
- money received by the Foundation because of such gifts or deductible contributions;
must be transferred to another organisation with similar purposes and that is not carried on for the purposes of profit or gain to its members, and that is also endorsed by the Commissioner of Taxation as a public benevolent institution under Item 4.1.1 of section 30-45 of the ITAA and as a deductible gift recipient under Division 30 of the ITAA.
(4) In the event of the winding up or the cancellation of the incorporation of the Foundation, the surplus assets of the Foundation must not be distributed to any members or former members of the Foundation.
(5) Subject to the Act and any court order made under section 133 of the Act, the surplus assets must be given to a body that has similar purposes to the Foundation and which is not carried on for the profit or gain of its individual members.
(6) The body to which the surplus assets are to be given must be decided by special resolution.