ASSOCIATIONS INCORPORATION ACT 1985 - SECT 53
ASSOCIATIONS INCORPORATION ACT 1985 - SECT 53
53—Investing or depositing money with association
(1) An incorporated
association must not invite any person who is not a member of the association
to invest or deposit money with the association, unless—
(a)
prior to or at the time of making any such invitation, the association issues
to the person a disclosure statement in accordance with subsection (2);
and
(b)
the Commission has approved the invitation.
(2) For the purposes
of this section, a disclosure statement must set out—
(a) the
name and principal objects of the association as set out in the rules of the
association; and
(b) the
names, addresses and occupations of the members of the committee of the
association; and
(c) the
total amount of deposits sought by the association; and
(d) the
purposes for which the deposits (if obtained) will be applied; and
(e) the
particulars of the security (if any) to be given in respect of the deposits;
and
(f) the
rate of interest (if any) payable on the deposits; and
(g) the
terms of repayment of the deposits; and
(h)
details of the association's—
(i)
current assets and liabilities; and
(ii)
other assets and liabilities; and
(iii)
net tangible assets,
as at the association's last balance date and the amount of any operating
profit and extraordinary items after income tax for the association's last
financial year.
(3) Where a person
invests or deposits money with an association in response to an invitation
made contrary to subsection (1), the transaction is void.
(4) A person who
invests or deposits money with an association pursuant to a transaction that
is void by virtue of subsection (3) may recover that money from the
association as a debt.
(5) Where a disclosure
statement—
(a)
includes any statement—
(i)
that is false; or
(ii)
that is misleading in the form or context in which it is
included; or
(b)
omits any matter or thing that is required to be included,
any person who authorised or caused the disclosure statement to be issued is
guilty of an offence.
Maximum penalty: $5 000.
(6) It is a defence to
a charge of an offence against subsection (5)—
(a) that
the statement or omission was immaterial; or
(b) that
he or she had reasonable grounds to believe, and did at the time of the issue
of the disclosure statement believe, that the statement was not false or
misleading or that the omission was immaterial; or
(c) in
the case of an omission—that the omission was inadvertent.
(7) For the purposes
of subsection (5) a statement is to be regarded as part of a disclosure
statement if it is contained in any report or memorandum that appears on the
face of, or is issued with, the disclosure statement, or is incorporated by
reference in the disclosure statement, whether the reference occurs in the
disclosure statement or in any other document.
(8) The approval of
the Commission under subsection (1) may be granted on such conditions as
the Commission thinks fit and may, at any time, by instrument in writing, be
varied or revoked by the Commission.
(9) This section does
not apply to an invitation by an association for the investment of
money—
(a) in a
fund that was being maintained by the association on 1 March 1985; or
(b) in
accordance with an approval of the Commission given before the commencement of
this section.