Social & Cultural Life In Mining Communities
Colin Huntly
School of Business Law
Curtin University of Technology
Abstract
This article examines the legal status of social clubs, sporting groups, cultural and religious
bodies in mining communities. The article examines in particular the advantages of using
incorporation, under the Associations Incorporation Act 1987 (WA), and insurance as
means of reducing the personal liability of members and office bearers. In addition, the
article explains the method of seeking incorporation, and the ongoing regulatory burden
faced by incorporated associations. The article also indicates that the relevant legislation is
currently under review.
Introduction
1996 there were some 14 542 incorporated associations
In mining communities, the role played by social clubs,
in Western Australia alone.1 This total figure
sporting groups, cultural and religious bodies is vital to
comprised
the social and cultural life.
following proportions, and is represented in the table
the
following
classifications,
in
the
below.2
The richness of a community stems more from the
differences between its members, than the common
Code
Classification
%
venture of the mining activity. For instance, some
A
Religious; Educational (including Day Care,
22.15
Toy Libraries, Play Groups, Pre-Schools and
%
people are interested in art, some in music, some sport
Parent
or literature. Different religious beliefs are shared, or
Associations);
Charitable;
&,
Benevolent.
not shared. Not everyone plays football or hockey or
B
Literary; Scientific; Arts; &, Musical.
5.18%
netball. There are a panoply of needs also, such as
C
Sport; Recreation; &, Amusement.
36.32
D
Community Establishment, Advancement and
13.31
Promotion;
%
activities for
%
young people, pre-school groups,
community health centres, the list goes on and on.
Social
and
Cultural
Societies/Centres.
E
This article will consider the legal advantages to such
Political;
Environmental
2.76%
Protection/Preservation; &, Historical and
groups of becoming incorporated and will explain how
Heritage.
incorporated status can be achieved.
F
Breeding; &, Agricultural/Horticultural.
2.34%
G
Trade, Professional & Industry Organisations;
9.31%
and, Alumni Groups.
Whenever such groups form, there is usually a desire to
H
protect informality while at the same time provide for
Health Care; Hospitals; Aged Care; Retirement
3.56%
the continued success of the venture. The incorporation
issue is one that should be considered, even at this
1
Ministry of Fair Trading Files.
early stage. The most appropriate option to consider in
2
Huntly, C. T., 1996, “A Century of Incorporated
Associations in Western Australia: 1896-1996,”
Working Paper Series 96.05, Perth, WA, Curtin
University School of Business Law: 10.
such
a
situation,
is
incorporation
under
the
Associations Incorporation Act 1987 (WA). At 30 June
23
The Mining Industry - Volume 1, 1999
constitution with a lawyer. Once incorporated, the club
Villages; and, Senior Citizens Activities and
Interests.
I
Miscellaneous.
will enjoy a particular set of rights
5.16%
There is the ability to own property in the name of the
How To Incorporate
club. This is helpful if your members do not stay in
The cost of incorporation is currently around $100 plus
town permanently, or if the membership is frequently
the cost of advertising your intention to incorporate in
changing. Without incorporating, all club property has
the local paper. You can obtain an information kit from
to be legally owned by a person, or persons on trust for
the Business Names Branch of the Ministry of Fair
the club. If the club is ever sued, these people will be
Trading, Level 1/66 St Georges Terrace Perth 6000.
targets for litigation. Consider the situation of Bradley
This kit will explain the process, and give you a model
on which to base your Constitution. In addition, an
Egg Farm v Clifford [1943] 2 All ER 378 where the
unauthorised copy of the Associations Incorporation
committee members of a club were found personally
Act 1987 (WA) can be purchased for under $10 from
liable for damages for breach of a contract awarded
the State Law Publisher, 10 William Street Perth, 6000
against the association.
(Ph (08) 9321-7688). This copy cannot be used in
Court, but will be perfectly adequate for your purposes.
The club can employ people in its own name. In other
Alternatively, if you are connected to the internet, the
words, the management committee members are not
Act can be viewed at the following address:
personally liable for employee wages etc. In the case of
Peckham v Moore [1975] 1 NSWLR 353, it was held
http://www.austlii.edu.au/au/legis/wa/consol_act/aia
that employees of a club that is not incorporated can
1987307/ index.html#longtitle
sue the club’s committee members personally for
breach of employment duties such as workers
compensation.
Benefits of Incorporation
If your association/club (“the club”) has a lot of
members, owns valuable property or employs people, it
The club can more easily obtain a liquor licence.
would be wise to discuss the preparation of a
Section 49 of the Liquor Licensing Act 1988 (WA)
24
Legal Issues in Business
requires applicants for a club licence to be incorporated
Presumably this phenomena is not confined to Victoria.
associations.
This trend should be of concern to any person involved
in community activities.
The club can more easily obtain government assistance.
Most government agencies such as local shires, and
What Is a Constitution?
state government departments will only provide
Don’t be frightened of producing a constitution. Put
financial assistance to clubs that become incorporated.
simply, it should explain as clearly as possible:
Since the Western Australian case of City of Gosnells v
Roberts [1994] Aust Torts Reports 61,841 (81-313)

Who you are;
local government bodies are wary of even leasing

What you do;
premises to clubs that are not incorporated.

How you operate (including procedures to become
a member);
The
personal
liability of members, particularly

How you will deal with internal disputes;
committee members, becomes limited in a similar way

How your finances are to be arranged; and
to shareholders of a company. The club that is

How you will wind the club/association up at the
incorporated, and not its members personally, must
end of its life.
answer for the liabilities of the club. As demonstrated
above, this is not the same for a club that is not
Ongoing Regulation of Incorporated Associations
incorporated.
Once your club has incorporated, there are also some
responsibilities of which you should be aware. The
The club outlives its members. In other words,
Associations Incorporation Act 1987 (WA) makes the
members may come and go, but the club lives on.
club’s committee members responsible for ensuring
that:
Recent Trends in Litigation
Evidence produced by one author measuring the

volume of sport and recreation related personal injury
Fair Trading at section 42;4
litigation in Victoria clearly indicates:

population,
proposed
contracts
with
the
matters in committee meetings;5
participation
rates, injury rates or the volume of
litigation in general. This higher level of

The Annual General Meeting takes place;6

Accounting Records are kept in an appropriate
manner;7
litigation has been maintained into the

1990’s.3
3
or
association, and refrain from voting on those
occurred which cannot be explained by
in
They disclose interests which they have in
contracts,
… that in the early 1980’s an increase
changes
Certain documents are lodged with the Ministry of
See also Opie, H., 1996, “Sports Associations and
their Legal Environment,” in Legal Issues for Nonprofit Associations, eds. M. McGregor-Lowndes,
K. Fletcher and A. S. Sievers. North Ryde, NSW,
LBC Information Systems: 52-74.
25
Annual Accounts are laid before the members;8
4
Sections 17, 18, 19, 30, 33, 39 & 40.
5
Sections 21 & 22.
6
Section 23.
7
Section 25.
8
Section 26.
The Mining Industry - Volume 1, 1999



The Register of Members is maintained and
be that your club operates from someone else’s
available;9
premises, such as the Shire Community Centre. Don’t
The Rules of the association are maintained and
assume that their insurance policy covers your
available;10 and
activities. Generally, the law requires the occupier of
The Register of Office Holders is maintained and
property to be responsible for its condition, not the
available.11
owner. The current law in Australia on this point is
most succinctly expressed in Australian Safeway Stores
Breaches of these requirements, leave committee
Pty Ltd v Zaluzna (1987) 162 CLR 479. Essentially the
members liable to a fine - not exceeding $500 at
law requires the occupier of premises to keep those
section 42. To date, there is no record of such a fine
premises in reasonable condition. If you decide to get
ever being enforced by the Ministry of Fair Trading. In
legal advice about nothing else, it is essential that you
addition to these committee member duties there are
get some about your insurance requirements and
other matters to be aware of, namely:
current coverage.16

The club must not trade or distribute pecuniary
Conclusion
profit to its members. However, small scale
Keep doing what you are doing in your mining
trading, to supplement the purposes of the club is
community! We do not live in a risk free world.
permitted;12
However, these two simple and relatively inexpensive

strategies (ie: incorporation & insurance) can offer
The club cannot engage in activities that are
considerable personal security. How large do you have
outside of the purposes stated in the constitution;13

to be before you incorporate? The statutory minimum
The club must lodge any changes to its constitution
is 6 persons. $18 per person is an inexpensive purchase
with the Business Names Branch. No change is
of a rare commodity - limited personal liability. But
legal until this happens;14 and

When the
club
dissolves,
remember that insurance should also be considered
any surplus on
whether you do, or do not, become incorporated.
dissolution must go to either an incorporated
association with similar purposes or charity. None
As a last point, you should be aware that the
of the surplus can be distributed to the members.
Associations Incorporation Act 1987 (WA) is currently
On the other hand, clubs that do not get
under review. A copy of the proposed amendments can
incorporated status, can split any surplus between
be obtained from the Business Names Office. It is also
the members.15
on the internet at:
Other Strategies For Limiting Liability
http: //www.wa.gov.au/mft/pages/mftnn3.html17
Whether or not you decide to incorporate, your club
should also consider its insurance requirements. It may
9
Section 27.
10
Section 28.
11
Section 29.
12
Section 4.
13
Sections 13 & 15.
14
Sections 17, 18 & 19.
15
Sections 30 - 36.
26
16
See also McGregor-Lowndes, M., 1996,.
Effectively Managing Risks and Liabilities of Nonprofit Associations, in Legal Issues for Non-profit
Associations., eds. M. McGregor-Lowndes, K.
Fletcher and A. S. Sievers, North Ryde, NSW,
LBC Information Systems: 52-74.
17
NB This review was not followed through and
remains “on the table” with the current
Ministry of Consumer and Employment
Protection.