Large scale not for profit associations considering migrating to a company structure will welcome recent changes to the Associations Incorporation Act 1981 (Qld). The changes effective from December 2012 provide associations with the opportunity to voluntarily transfer incorporation to a company limited by guarantee, or an Indigenous Corporation, without the need to pay transfer duty or capital gains tax.
Under this process the change in corporate status does not create a new legal entity. Therefore, providing the added advantage of continuing contracts, for example, employment, building leases, sponsorship and grants, without the need to novate to a new entity.
If you would like to discuss the advantages of migrating to a company structure or the process and requirements to transfer incorporation to a company limited by guarantee please contact Dr Joanne Redburn on 07 3160 0010.