M1: Learner Manual

3.1. What is Incorporation?

Incorporation gives your group its own legal identity (the group becomes a 'separate legal entity' from its members). The incorporated group can enter into contracts, sign a lease, employ people, and sue and be sued.

Incorporated groups are incorporated under law (which can be either state or federal) and report to the regulator responsible for their type of structure, for example the Australian Securities and Investments Commission (ASIC).

Incorporated groups follow a particular structure, with group rules (or constitution), members, and a governing body (often called a Board or committee).

Being incorporated has consequences for people who are going to be on the Board or committee of management of a not-for-profit group, as legal duties attach to these roles.