Transition to CLG

The Committee of the Alliance Française de Canberra is proposing to Members that the Alliance française de Canberra (AFC) change from an Incorporated Association to a Company Limited by Guarantee.  

This change has a number of advantages and disadvantages: 

Advantages: 

• Consistent with changes made by Sydney and Melbourne Alliances
  The Sydney and Melbourne Alliances Française are both companies limited by guarantee. 
  
  
• Will enable the AFC to position itself strongly for the future
  Many non-profit organisations are becoming companies limited by guarantee to enable them to have better access to finance, stronger governance, and increased opportunities for sponsorships and partnerships. 
  
  
• Enables AFC to operate interstate
  Becoming a company limited by guarantee will allow the AFC to operate interstate and to fully serve the region surrounding Canberra with French classes and cultural events
  

• Provides strong and proven accountability mechanisms
  The company structure means that directors and company officers have clear accountability and reporting mechanisms for managing the company’s business.  
  

• Decreased liability for members
  A company limited by guarantee limits the liability of members to a small amount of money (suggested $10).  An incorporated association (the AFC’s current corporate form) means members are liable for the amount of their unpaid membership fee (currently $60)
  

Disadvantages: 

• Some compliance costs increas

       The transition to company limited by guarantee will result in some increased fees payable to the Australian Securities and              Investment Commission. The AFC is already audited in compliance with the Corporations Act and will require no additional            cost.

• Stronger financial reporting requirements
  

       Public companies must meet the financial reporting requirements of the Corporations Act, including lodging information with          ASIC, and auditing of accounts.  In practice, the AFC already engages an auditor to audit our accounts so this will not be a              significant added burden. The AFC already complies with this requirement.

What it will mean for members: 

• No changes for most members: French classes will continue to be offered, at the same price.
  

How does the proposed transition work? 

• A new Constitution is drafted for Members to consider
  
• An email will be sent to every member with links to information about the Constitution on the Alliance Française website
  
• A notice will be sent to members with further information and links to the draft Constitution on the Alliance Francaise website
  
• A notice of a Special General Meeting to discuss the proposed change is sent to all Members
  
• A Special General Meeting will be held in May 2021, where members can vote on whether or not they agree with the proposed transition
  

I have more questions – who should I ask? 

• If you have further questions about the proposed change to the Alliance’s Constitution, please send your queries to the community@afcanberra.com.au mailbox and we will respond to you as quickly as possible