The offences are set out in the Associations Incorporation Act 1985 (SA). These offences are relevant where an association:
- is being or has been wound up
- has been in the course of being wound up, where the winding up has been stayed or terminated
- has had a provisional liquidator appointed
- is or has been under administration
- has executed a deed of arrangement
- is defunct or unable to pay its debts (both of these events are specifically defined in the Associations Incorporation Act 1985 (SA) ).
Non-disclosure [Associations Incorporation Act 1985 (SA) s 49AB]
It is an offence for an officer or former officer not to make full disclosure of the issues required by the Associations Incorporation Act to the liquidator or other appropriate person. It is an offence not to deliver up property or documents as required. Certain fraudulent acts within the previous five years also come under this section. The maximum penalty is $10 000 or two years imprisonment.
Failure to keep proper records [Associations Incorporation Act 1985 (SA)s 49AC]
If the association is ending and there are not proper records for any period during the previous two years, an officer (see DUTIES OF OFFICERS) who has not taken all reasonable steps to ensure compliance with the requirement to keep proper records is guilty of an offence. The maximum penalties are $5000 or one year imprisonment for a prescribed association, and in other cases $5000.
Incurring debts not likely to be paid [Associations Incorporation Act 1985 (SA) s 49AD]
If an association incurs a debt when there are reasonable grounds to expect it will not be able to pay all its debts as and when they become due, any committee member or person who took part in the management of the association at the time the debt was incurred commits an offence punishable by up to $5000 or one year imprisonment. The court can also order payment of an amount equal to some or all of the debt. It is a defence if the debt was incurred without the person's express or implied authority or consent, or if there was no reasonable cause to expect that the association would not be able to pay all its debts.
Where an association has done an act with intent to defraud, any person who was knowingly concerned in this act commits an offence punishable by up to $10 000 or two years imprisonment. The court can also order payment of the amount needed to satisfy all or any of the association's debts.
Fraud [Associations Incorporation Act 1985 (SA) s 49AF]
This section sets out various offences in relation to fraud with which an officer of an association may be charged. The penalties are a fine of up to $10 000 or two years imprisonment.
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