Compliance with the Baptist Union Incorporation Act 1919 is straightforward for a functioning religious corporation, but attention to detail is essential.
1. Ensure by-laws are registered and current. The corporation must maintain a current set of by-laws registered in the NSW Office for the Registration of Deeds (now part of NSW Land Registry Services). Any amendment or new by-law must go through the two-meeting process (s 7) and then be registered before it has force (s 8). A statutory declaration by the president or a committee member must accompany the registration, proving the by-law is authentic. The corporation should keep a certified sealed copy for evidentiary use under s 9.
2. Maintain the executive committee with at least twelve members. The corporation must ensure that the executive committee never falls below twelve. If it does, the committee’s authority to manage the corporation’s business may be legally questionable. The by-laws should provide for prompt replacement of committee members. The committee should hold regular meetings and keep minutes, signed by a member present, to create prima facie evidence under s 9.
3. Use the common seal correctly. The seal is in the custody of the executive committee. It can be affixed only when directed by three or more members as the by-laws prescribe (s 4). For deeds and documents requiring a seal, the corporation must follow the procedure. However, for ordinary business and appointments (secretary, solicitor, etc.), the seal is not required. The committee should document in minutes that the seal was affixed or that sealing was dispensed with.
4. Give receipts in the statutory form. When receiving money (e.g., from a sale, loan, or donation), the corporation should issue a receipt either under seal or signed by at least three persons purporting to be authorised by the executive committee. A single-signature receipt does not exonerate the payer. The authorised persons may be committee members or others; the by-laws should specify who can sign.
5. Be aware of the doctrinal limitation. The corporation should ensure its activities align with the objects set out in Schedule A. While third parties are protected, members could challenge non-object activities. The by-laws should state the objects and require any new activity to be authorised by the committee or by members.
6. Coordinate with the Baptist Churches of New South Wales Property Trust Act 1984. By-laws must not be inconsistent with that Act. The corporation’s legal adviser should review the 1984 Act periodically and ensure by-laws comply. Any inconsistency should trigger a by-law amendment.
7. Handle service of process carefully. The corporation should ensure that all executive committee members are aware that they can be served with legal documents on behalf of the corporation. The corporation should maintain a record of current committee members and inform them of their duties if served.
8. Review land titles for Crown grant issues. If the corporation holds land granted by the Crown before or after 1958, consider whether s 3A validation applies. The corporation may wish to obtain legal advice on whether any title is still at risk despite the validation. For new land acquisitions, do not rely on s 3A; ensure compliance with Crown grant conditions.
9. Maintain minute books accurately. Under s 9, a minute book entry signed by a member of the executive committee who presided or was present is prima facie evidence of meeting proceedings. This means the corporation can rely on its minutes to prove decisions. However, if the minutes are incomplete or unsigned, they may be challenged. Minutes should record the exact proceedings, especially votes on by-law amendments.
10. Keep a registered copy of by-laws available for public inspection. Section 8 requires the registered by-laws to be open for inspection at all reasonable times by the public. The corporation should know where the registration is held and advise members and the public accordingly. If the registration office is not easily accessible, the corporation might voluntarily provide copies, but the statutory right is at the registry, not at the corporation’s office.
11. Seek legal advice on any unusual transactions. Given the exoneration provisions, third parties are protected, but the corporation may still face internal litigation. For major transactions (especially property dealings), the executive committee should obtain legal advice to ensure it is acting within power and in accordance with by-laws. While s 11 protects outsiders, it does not protect the committee from actions by members for breach of duty.
12. Consider modernising governance. The Act is from 1919 and does not address modern issues like electronic voting, email notice, or online meeting platforms. The by-laws should be drafted to accommodate such practices within the two-meeting requirement. Provisions for electronic registration of by-laws should be explored with the registrar.
Compliance is not onerous for a well-run religious body. The main risks are (a) unregistered by-laws leading to invalid internal actions, and (b) a committee falling below the minimum size. The Act’s protections for third parties mean that external audits of the corporation’s authority are unnecessary, but internal governance must be robust to avoid member disputes.