New South Wales Consolidated Acts

ASSOCIATIONS INCORPORATION ACT 1984 - SECT 18

18 Restrictions on incorporated associations

(1) Subject to this Act, an incorporated association shall not:

(a) exercise any power that the association is prohibited, by the rules of the association, from exercising,

(b) exercise any power contrary to a restriction on the exercise of that power contained in the rules of the association, or

(c) do any act otherwise than in pursuance of the objects of the association.

(2) An officer of an incorporated association shall not be in any way, by act or omission, directly or indirectly, knowingly concerned in or party to a contravention by the association of subsection (1).

(3) An act of an incorporated association, including the making of an agreement by an incorporated association and a transfer of property to or by an incorporated association, is not invalid by reason only that the doing of the act is prohibited by subsection (1) or by the rules of the association.

(4) An act of an officer of an incorporated association is not invalid by reason only that the doing of the act is prohibited by subsection (2).

(5) The fact that:

(a) the doing of an act by an incorporated association was or would be prohibited by subsection (1) or by the rules of the association, or

(b) the doing of an act by an officer of an incorporated association was or would be prohibited by subsection (2),

may be asserted or relied on only in:

(c) a prosecution of a person for an offence against this Act,

(d) proceedings against the association by a member of the association to restrain the doing of any act by the association,

(e) proceedings by the association, or by a member of the association, against a present or former officer of the association, or

(f) an application by the Director-General or by a member of the association to wind up the association.