This Act lets the General Assembly of the Presbyterian Church (NSW) convert named unincorporated church bodies into statutory corporations (by resolution and Governor’s proclamation), set their governance by by‑laws, and apply specified Property Trust Act provisions to them. It also abolishes and transfers certain historical church superannuation arrangements. Mechanically it creates automatic vesting and transfer of assets, rights and liabilities without conveyance, sets procedural, evidential and indemnity rules for those corporations, and provides transitional and stamp‑duty relief affecting trustees, congregations, members and third parties.
Mechanically, the Act creates a statutory route by which unincorporated bodies within the Presbyterian Church (to the extent the General Assembly has jurisdiction) may be turned into corporations, and it prescribes how property, rights and liabilities move when that happens. The General Assembly may, by resolution, declare that an identified unincorporated Church body is to be constituted as a corporation (s 7(1)). Where the body is established for a congregation, that resolution requires the congregation’s consent in the manner provided under s 12 of the Property Trust Act (s 7(2)). After the General Assembly resolves, the Governor gives legal effect by proclamation; on the effective date stated in the proclamation the unincorporated body becomes a corporation under the name specified (s 7(3)-(4)). The General Assembly may also resolve to dissolve a corporation constituted under the Division, and the Governor may proclaim the dissolution (s 8(1)-(3)).
Assets, rights and liabilities move automatically on constitution or dissolution. Schedule 2 gives effect to automatic vesting: when an unincorporated body is incorporated its assets vest in the new corporation and its rights and liabilities become the corporation’s without the need for conveyance (Sch 2 cl 3(1)(a)-(b)). Likewise, where a corporation is dissolved its assets, rights and liabilities transfer to The Presbyterian Church (New South Wales) Property Trust (the Property Trust) by virtue of the Schedule (Sch 2 cl 4(1)(a)-(b)). The Schedule also treats existing proceedings as continuing against the successor body (Sch 2 cl 2(c), cl 3(1)(c), cl 4(1)(c)), provides that prior acts are taken to be done by the successor entity (Sch 2 cl 2(d), cl 3(1)(d), cl 4(1)(d)), and declares that references in instruments to prior bodies are to be read as references to successors (Sch 2 cl 2(e), cl 3(1)(e), cl 4(1)(e)). Schedule 2 expressly disapplies procedural formalities such as attornment by lessees (Sch 2 cl 3(3), cl 4(2)) and exempts the transfers contemplated from stamp duty (Sch 2 cl 6).
Current sections
Direct links to the current provisions in Presbyterian Church (Corporations) Act 1995.
This Act commences on a day or days to be appointed by proclamation.
3
Definitions
3 Definitions
3 Definitions
In this Act:
Beneficiary Fund means the fund referred to in the Beneficiary Fund Act.
Beneficiary Fund Act means the Act repealed by section 24.
Beneficiary Fund Committee means the committee appointed by the General Assembly under section 3 of the Beneficiary Fund Act to administer the Beneficiary Fund.
by-laws means the by-laws made by the General Assembly under section 21 and in force for the time being.
corporation means a corporation constituted under this Act.
exercise a function includes perform a duty.
function includes a power, authority or duty.
General Assembly means the General Assembly for the time being of the Presbyterian Church of Australia in the State of New South Wales.
Property Trust means The Presbyterian Church (New South Wales) Property Trust constituted under the Property Trust Act.
Superannuation Corporation means the Presbyterian Church (NSW) Superannuation Corporation constituted by this Act as in force immediately before the amendment of this Act by the Statute Law (Miscellaneous Provisions) Act 2005.
Superannuation Fund means the Presbyterian Church (NSW) Superannuation Fund maintained under this Act as in force immediately before the amendment of this Act by the Statute Law (Miscellaneous Provisions) Act 2005.
the Church means the Presbyterian Church of Australia to the extent that the General Assembly has jurisdiction in relation to it.
unincorporated body of the Church means:
(a) any council, committee, or board appointed (either before or after the commencement of section 7) by the General Assembly under section 13 of the Property Trust Act to carry on any activities or projects of the Church, or
(b) any other body established for the purpose of an activity, fund, service, institution or interest of the Church generally or a congregation of the Church.
s 3: Am 2005 No 64, Sch 1.29 [3]–[5].
Part 2
Corporations
Part 2 Corporations
Part 2 Corporations
Division 1
Division 1
Division 1
4–6 (Repealed)
pt 2, div 1 (ss 4–6): Rep 2005 No 64, Sch 1.29 [6].
Division 2
Other corporations
Division 2 Other corporations
Division 2 Other corporations
7
Power to constitute corporations
7 Power to constitute corporations
7 Power to constitute corporations
(1) The General Assembly may, by resolution, declare that an unincorporated body of the Church named in the resolution should be constituted as a corporation under the name set out in the resolution.
(2) If the unincorporated body of the Church named in the resolution is a body established for the purpose of an activity, fund, service, institution or interest of a congregation of the Church, the General Assembly must not pass a resolution under subsection (1) unless the congregation consents to the resolution in the manner provided under section 12 of the Property Trust Act.
(3) If such a resolution is passed, the Governor may, by proclamation, declare that the unincorporated body of the Church named in the resolution is constituted as a corporation.
(4) On and from the date of such proclamation (or from such later date as may be specified in the proclamation), the unincorporated body named in the proclamation is by the proclamation constituted as a corporation under the corporate name set out in the proclamation.
8
Power to dissolve corporations
8 Power to dissolve corporations
8 Power to dissolve corporations
(1) The General Assembly may, by resolution, declare that a corporation constituted under this Division should be dissolved.
(2) If such a resolution is passed, the Governor may, by proclamation, declare that the corporation named in the resolution is dissolved.
(3) On and from the date of such proclamation (or from such later date as may be specified in the proclamation), the corporation named in the proclamation is dissolved.
9
Functions of corporations
9 Functions of corporations
9 Functions of corporations
A corporation constituted under this Division may exercise the functions conferred or imposed by the General Assembly on:
(a) the corporation, or
(b) the unincorporated body of the Church that was constituted as the corporation.
Division 3
General provisions relating to corporations
Division 3 General provisions relating to corporations
Division 3 General provisions relating to corporations
10
General functions of corporations
10 General functions of corporations
10 General functions of corporations
Sections 10, 10A, 10B, 12, 14, 15, 19, 20, 21, 21A, 21B and 23 of the Property Trust Act apply in respect of a corporation in the same way as those sections apply to the Property Trust under the Property Trust Act.
11
Delegation of functions
11 Delegation of functions
11 Delegation of functions
A corporation may delegate any of its functions (other than this power of delegation) to:
(a) any member of the corporation, or
(b) any other person or body prescribed by the by-laws.
12
Membership and procedure of corporations
12 Membership and procedure of corporations
12 Membership and procedure of corporations
Schedule 1 has effect with respect to the membership and procedure of a corporation.
13
Transfer of assets, rights and liabilities
13 Transfer of assets, rights and liabilities
13 Transfer of assets, rights and liabilities
Schedule 2 has effect.
Part 3
Administrative provisions
Part 3 Administrative provisions
Part 3 Administrative provisions
14
Common seal
14 Common seal
14 Common seal
(1) The seal of a corporation is to be kept by an officer of the corporation in safe custody, and is to be affixed to a document only:
(a) in accordance with a resolution of the corporation, and
(b) in the presence of not fewer than 3 members of the corporation, and
(c) with an attestation by the signatures of those members of the fact of the affixing of the seal.
(2) An instrument purporting to have been sealed with the seal of the corporation and to have been signed by not fewer than 3 members of the corporation is taken to have been executed in accordance with this section.
15
Execution under seal by agent
15 Execution under seal by agent
15 Execution under seal by agent
(1) A corporation may, by writing under its seal, expressly empower any person, in respect of any specific matter, to execute any deed, instrument, contract or agreement on its behalf as its agent or attorney.
(2) Any deed signed by such an agent or attorney under his or her seal on behalf of a corporation binds the corporation and has the same effect as if it were under the seal of the corporation.
16
Evidence
16 Evidence
16 Evidence
(1) A certificate under the seal of a corporation to the effect that property specified in the certificate is vested in the corporation in trust for:
(a) the Church generally, or
(b) any congregation of the Church, or
(c) the purposes of an activity, fund, service, institution or interest of the Church,
is, in any legal proceedings, prima facie evidence of the matters so certified.
(2) A certificate under the seal of a corporation to the effect that the estate or interest of a person specified in the certificate in land so specified is an estate or interest vested in the corporation by this Act is, for the purposes of any application by the corporation to be registered under the Real Property Act 1900 as the proprietor of that estate or interest pursuant to the vesting, prima facie evidence of the matters so certified.
17
Receipt for certain money
17 Receipt for certain money
17 Receipt for certain money
A receipt for money paid to a corporation that:
(a) is executed under the seal of the corporation, or
(b) is in writing signed by not less than 3 members of the corporation, or
(c) is in writing signed by a person or persons purporting to be duly authorised for the purpose by the corporation,
exonerates the person by whom or on whose behalf the money is paid from any liability for the loss, misapplication or non-application of the money.
18
Exoneration from inquiry
18 Exoneration from inquiry
18 Exoneration from inquiry
If a corporation acquires, disposes of or otherwise deals with property, it is not necessary for:
(a) any other person who is a party to any such dealing, or
(b) the Registrar-General or any other person registering or certifying title to the property,
to inquire whether the corporation has power to so deal with the property.
19
Indemnification of certain persons
19 Indemnification of certain persons
19 Indemnification of certain persons
(1) The following persons are entitled to be indemnified out of property vested in a corporation against all expenses and liabilities incurred in the exercise of a function in good faith in relation to property vested in the corporation in accordance with this Act or any by-law:
(a) a member of the corporation and any other person exercising such a function,
(b) the executor or administrator of any such member or person.
(2) (Repealed)
s 19: Am 2005 No 64, Sch 1.29 [7] [8].
20
Service of documents
20 Service of documents
20 Service of documents
Any document may be served on a corporation by delivering it to, or sending it by post to, the secretary of the corporation, or any person appearing to be authorised by the corporation to accept service.
21
By-laws
21 By-laws
21 By-laws
(1) The General Assembly may make by-laws for or with respect to the following matters:
(a) the control, management and administration of, and dealings with, property vested in a corporation,
(b) the manner in which a corporation is constituted,
(c) the affairs of the corporation.
(2) Without limiting the generality of subsection (1), the General Assembly may make by-laws:
(a) to change the name of the corporation, and
(b) to fix the number of members of the corporation, and
(c) to prescribe the methods of election, appointment and retirement of such members, and
(d) to prescribe the circumstances in which a vacancy in the office of any such member is taken to occur and how it is to be filled.
(3) A by-law must be consistent with this Act.
(4) A certificate under the seal of the corporation to the effect that a by-law specified in the certificate was in force on a day specified in the certificate is prima facie evidence that the by-law was in force on that day.
(5) A by-law may be amended or repealed by a subsequent by-law made under this section.
s 21: Am 2005 No 64, Sch 1.29 [9] [10].
Part 4
Miscellaneous
Part 4 Miscellaneous
Part 4 Miscellaneous
22
22
22, 23 (Repealed)
24
Repeal of Act relating to the Beneficiary Fund of the Presbyterian Church of Australia in New South Wales
24 Repeal of Act relating to the Beneficiary Fund of the Presbyterian Church of Australia in New South Wales
24 Repeal of Act relating to the Beneficiary Fund of the Presbyterian Church of Australia in New South Wales
The Act entitled “An Act to validate certain arrangements, acts, and regulations heretofore entered into, done and made, relating to the Beneficiary Fund of the Presbyterian Church of Australia in the State of New South Wales, and to confer upon the General Assembly of the said Church power to regulate and control the said Fund in all respects, including membership, basis or rate of contribution, and other conditions of the same, and to extend the benefits of the said Fund to persons not resident in the said State; and for other incidental purposes”, assented to on 5 April 1929, is repealed.
25
Savings, transitional and other provisions
25 Savings, transitional and other provisions
25 Savings, transitional and other provisions
Schedule 3 has effect.
s 25: Ins 2005 No 64, Sch 1.29 [11].
Schedule 1
Provisions relating to membership and procedure of corporations
Schedule 1 Provisions relating to membership and procedure of corporations
Schedule 1 Provisions relating to membership and procedure of corporations
(Section 12)
sch 1: Am 1999 No 94, sec 7 (3) and Sch 5, Part 3; 2005 No 64, Sch 1.29 [12]–[20].
4
Conflict of interests
4 Conflict of interests
4 Conflict of interests
(1) If:
(a) a member of a corporation has an interest in a matter being considered or about to be considered at a meeting of the corporation, and
(b) the interest appears to raise a conflict with the proper performance of the member’s duties in relation to the consideration of the matter,
the member must, as soon as possible after the relevant facts have come to the member’s knowledge, disclose the nature of the interest at a meeting of the corporation.
(2) A disclosure by a member at a meeting of the corporation that the member:
(a) is a member, or is in the employment, of a specified company or other body, or
(b) is a partner, or is in the employment, of a specified person, or
(c) has some other specified interest relating to a specified company or other body or to a specified person,
is a sufficient disclosure of the nature of the interest in any matter relating to that company or other body or to that person that may arise after the date of the disclosure and that is required to be disclosed under subclause (1).
(3) Particulars of any disclosure made under this clause must be recorded by a corporation in a book kept for the purpose and that book must be open at all reasonable hours to inspection by any person.
(4) After a member of a corporation has disclosed the nature of an interest in any matter, the member must not, unless the corporation otherwise determines:
(a) be present during any deliberation of the corporation with respect to the matter, or
(b) take part in any decision of the corporation with respect to the matter.
(5) For the purpose of the making of a determination by a corporation under subclause (4), a member of a corporation who has an interest in a matter to which the disclosure relates must not:
(a) be present during any deliberation of the corporation for the purpose of making the determination, or
(b) take part in the making by the corporation of the determination.
(6) A contravention of this clause does not invalidate any decision of the corporation.
5
Personal liability of members etc
5 Personal liability of members etc
5 Personal liability of members etc
A matter or thing done by a corporation, a member of a corporation or any person acting under the direction of a corporation does not, if the matter or thing was done in good faith for the purpose of executing this or any other Act, subject the member or a person so acting personally to any action, liability, claim or demand.
6
General procedure
6 General procedure
6 General procedure
(1) The procedure for the calling of meetings of a corporation and for the conduct of business at those meetings is, subject to this Schedule, to be as determined by the corporation.
(2) The Clerk of the General Assembly is to call the first meeting of a corporation in such manner as it thinks fit.
Schedule 2
Transfer of assets, rights and liabilities
Schedule 2 Transfer of assets, rights and liabilities
Schedule 2 Transfer of assets, rights and liabilities
(Section 13)
Schedule 3
Savings, transitional and other provisions
Schedule 3 Savings, transitional and other provisions
Schedule 3 Savings, transitional and other provisions
(Section 25)
sch 3: Ins 2005 No 64, Sch 1.29 [21].
Source text: opening excerpt
Sourced from legislation.nsw.gov.au, CC BY 4.0.
Part 1 Preliminary
Part 1 Preliminary
Part 1 Preliminary
1 Name of Act
1 Name of Act
1 Name of Act
This Act is the Presbyterian Church (Corporations) Act 1995.
2 Commencement
2 Commencement
2 Commencement
This Act commences on a day or days to be appointed by proclamation.
3 Definitions
3 Definitions
3 Definitions
In this Act:
Beneficiary Fund means the fund referred to in the Beneficiary Fund Act.
Beneficiary Fund Act means the Act repealed by section 24.
Beneficiary Fund Committee means the committee appointed by the General Assembly under section 3 of the Beneficiary Fund Act to administer the Beneficiary Fund.
by-laws means the by-laws made by the General Assembly under section 21 and in force for the time being.
corporation means a corporation constituted under this Act.
exercise a function includes perform a duty.
function includes a power, authority or duty.
General Assembly means the General Assembly for the time being of the Presbyterian Church of Australia in the State of New South Wales.
Property Trust means The Presbyterian Church (New South Wales) Property Trust constituted under the Property Trust Act.
Property Trust Act means The Presbyterian Church (New South Wales) Property Trust Act 1936.
Superannuation Corporation means the Presbyterian Church (NSW) Superannuation Corporation constituted by this Act as in force immediately before the amendment of this Act by the Statute Law (Miscellaneous Provisions) Act 2005.
Superannuation Fund means the Presbyterian Church (NSW) Superannuation Fund maintained under this Act as in force immediately before the amendment of this Act by the Statute Law (Miscellaneous Provisions) Act 2005.
the Church means the Presbyterian Church of Australia to the extent that the General Assembly has jurisdiction in relation to it.
unincorporated body of the Church means:
(a) any council, committee, or board appointed (either before or after the commencement of section 7) by the General Assembly under section 13 of the Property Trust Act to carry on any activities or projects of the Church, or
The Act imports a set of provisions from The Presbyterian Church (New South Wales) Property Trust Act 1936: ss 10, 10A, 10B, 12, 14, 15, 19, 20, 21, 21A, 21B and 23 of the Property Trust Act apply to a corporation in the same way as they apply to the Property Trust (s 10). The Act also sets administrative rules for corporations: delegation of functions (s 11), membership and procedure rules via Schedule 1 (s 12), use and custody of a common seal (s 14), execution by agent under seal (s 15), evidentiary effect of certificates under a corporation’s seal (s 16), receipts and their effect (s 17), protection against inquiry into a corporation’s power to deal with property (s 18), indemnities (s 19), service of documents (s 20) and the General Assembly’s power to make by‑laws regulating name, membership numbers, elections and vacancies, and the control and administration of corporation property (s 21).
The Act also repeals an older Beneficiary Fund Act (the 1929 Beneficiary Fund Act) (s 24) and, by Schedule 3 (added by a 2005 amending statute), implements further transitional measures. Those later provisions include the dissolution of the Superannuation Corporation and abolition of the Superannuation Fund; on dissolution the former Superannuation Corporation’s assets, rights and liabilities were transferred to the Property Trust by operation of the inserted provisions (Sch 3 Part 2 ss 3-5).
The Act therefore effects a set of governance, property‑transfer, evidentiary and procedural rules to convert Church unincorporated entities into statutory corporations and to manage their dissolution or the transfer of particular Church funds and corporate entities into the Property Trust. The Act does not, within its text, set criminal penalties for non‑compliance beyond making conviction of certain offences a ground for vacancy of office in a corporation (Sch 1 cl 3(f)); dispute resolution and enforcement of rights in many instances remains a matter for ordinary civil processes or for internal corporate governance machinery.
The legislation itself frames these changes as a mechanism to constitute, administer and regulate Church corporations and to validate and orderly transfer of assets and liabilities (see the repeals and the Schedule provisions). Testing that stated purpose against the mechanics shows the following: constitution and dissolution require both an internal Church resolution and a gubernatorial proclamation (s 7, s 8), which divides decision‑making power between a Church body (General Assembly) and the executive (Governor); property transfers are automatic and do not require conveyancing formalities (Sch 2 cl 2-4), producing legal certainty for successor title and continuity of proceedings, while simultaneously removing some contractual or procedural obstacles to transfer (Sch 2 cl 5); evidentiary and transaction safeguards for third parties appear in s 16 (prima facie certificates) and s 18 (no inquiry into power to deal), shifting transactional risk toward the title‑registering authorities and counterparties who accept certificates and seals at face value.
Those mechanical features create discrete incentive effects and implementation risks discussed in later sections below: who pays (beneficiaries, congregations, registries, claimants), who decides (General Assembly, Governor, corporation members), what behaviour changes (use of by‑laws, maintenance of registers and minutes, how third parties treat certificates and seals), compliance burdens (record‑keeping, congregation consent where required), and substitution effects (automatic vesting versus negotiated conveyance). Each of these is tracked to the relevant provision below.
Main concepts
The Act is organised around a small number of interlocking legal concepts. State them precisely and map them to the text.
Statutory constitution of Church bodies as corporations. The General Assembly may resolve that an identified unincorporated body of the Church be constituted as a corporation; that constitution becomes legally effective only once the Governor proclaims it (s 7). The Act distinguishes between unincorporated bodies established for general Church purposes and those established for congregational activities; the latter require the congregation’s consent in a prescribed manner (s 7(2), cross‑referencing s 12 of the Property Trust Act by express text in s 7(2)).
Dissolution by the reverse process. The General Assembly may resolve for dissolution and the Governor may proclaim dissolution; the dissolution takes effect as stated in the proclamation (s 8). Schedule 2 governs what happens to assets, rights and liabilities on dissolution (Sch 2 cl 4).
Automatic vesting/transfer mechanics. When a body is incorporated or dissolved, the Schedule provides automatic vesting and transfer of assets, rights and liabilities to the successor statutory entity without the need for conveyances or other transfer instruments (Sch 2 cl 2(a), cl 3(1)(a), cl 4(1)(a) and related paragraphs). The Schedule treats existing legal proceedings as continuing against the successor (Sch 2 cl 2(c), cl 3(1)(c), cl 4(1)(c)). It also makes clear that prior acts done by the predecessor are taken to have been done by the successor to the extent they have effect (Sch 2 cl 2(d), cl 3(1)(d), cl 4(1)(d)).
Evidentiary presumptions. Certificates under the seal of a corporation stating that property is vested in the corporation in trust for Church purposes are prima facie evidence in legal proceedings (s 16(1)); certificates that an estate or interest of a person is vested in the corporation are prima facie evidence for applications to register under the Real Property Act 1900 (s 16(2)). Receipts executed under the seal or signed by prescribed numbers of members similarly exonerate payers (s 17). Those provisions create a default evidentiary structure facilitating registration and third‑party reliance.
Internal governance and by‑laws. The General Assembly may make by‑laws covering management of property vested in a corporation, the manner a corporation is constituted, and the affairs of the corporation; by‑laws must be consistent with the Act and may change names, fix numbers of members and prescribe election/retirement arrangements (s 21). Schedule 1 sets membership, term, vacancy, conflict of interest, quorum, voting, minutes and other procedural rules (Sch 1 cll 1-10).
Limitation on external inquiry. Where a corporation deals in property, persons dealing with the corporation and the Registrar‑General are not required to inquire whether the corporation has power to deal (s 18). That non‑inquiry rule insulates transferees and registries from enquiry into internal power, subject to other statutory or common law qualifications.
Indemnity and protection for decision‑makers. Members and others exercising functions in relation to property vested in the corporation are entitled to indemnification out of property vested in the corporation against expenses and liabilities incurred in the exercise in good faith of a function under the Act or a by‑law (s 19(1)). Schedule 1 also provides that actions taken in good faith for executing the Act or other Acts do not personally subject members or those acting under direction to action, liability, claim or demand (Sch 1 cl 5).
Delegation. Corporations may delegate any of their functions (except the power of delegation itself) to members or to persons or bodies prescribed by the by‑laws (s 11). That creates a formal channel to allocate operational responsibilities within the corporation.
Repeal and transitional measures. The Act repeals the 1929 Beneficiary Fund Act (s 24). Schedule 3 (inserted by later amending statute) contains savings and transitional provisions and, in Part 2 of that Schedule, dissolves the Superannuation Corporation and abolishes the Superannuation Fund, transferring their assets, rights and liabilities to the Property Trust (Sch 3 Part 2 ss 3-5). The Act therefore contains structural measures to consolidate Church trusts and funds into the Property Trust.
These concepts produce distinct legal effects: creation and dissolution of corporate personality for Church bodies; transfer of title and continuity of legal obligations; evidentiary presumptions facilitating registration and reliance; internal governance rules that bind members and officers; indemnities that allocate loss against trust property; and a statutory exemption from stamp duty on such transfers (Sch 2 cl 6). Each of those effects has practical consequences for property registration, asset management, dispute risk allocation and internal Church governance which are developed in the sections that follow.
Who it affects
Identify the stakeholders and map the Act’s provisions to each.
The General Assembly of the Presbyterian Church of Australia (within NSW jurisdiction). The General Assembly initiates incorporation and dissolution (ss 7, 8), makes by‑laws (s 21), and thereby exercises the primary political and governance authority created by the Act. The text repeatedly grants the General Assembly powers to constitute corporations, regulate their by‑laws, and manage the transfer and administration of property through certificate and proclamation mechanisms (s 7; s 21; Sch 2).
Unincorporated bodies of the Church. The Act defines unincorporated bodies broadly to include councils, committees or boards appointed under s 13 of the Property Trust Act and “any other body established for the purpose of an activity, fund, service, institution or interest of the Church generally or a congregation” (s 3 definition). Those bodies are the direct objects of constitution under s 7 and the subjects of automatic asset transfers in Sch 2 cl 3.
Congregations. Where a body being constituted as a corporation relates specifically to a congregation, the General Assembly must obtain the congregation’s consent in the manner provided by the Property Trust Act (s 7(2)). Congregations therefore have a gatekeeper role for local initiatives and assets seeking corporate form.
Members and officeholders of a corporation. Members hold office for terms set by by‑laws (Sch 1 cl 1). They must keep minutes (Sch 1 cl 10), disclose conflicts of interest and, when conflicted, generally refrain from participating in deliberations and decisions unless the corporation determines otherwise (Sch 1 cl 4). Members benefit from indemnification (s 19(1)) and protections from personal liability for acts done in good faith (Sch 1 cl 5). Casual vacancy rules (Sch 1 cl 3) and grounds for removal or vacancy (including bankruptcy, serious convictions, absence) directly affect who can serve.
Property Trust. The Presbyterian Church (New South Wales) Property Trust (defined in s 3) is a central counterparty under the Act. Assets and liabilities of dissolved corporations are transferred to the Property Trust (Sch 2 cl 4). The Property Trust also receives, under the later inserted Schedule 3 provisions, assets and liabilities of the dissolved Superannuation Corporation (Sch 3 Part 2 ss 3-5). Sections of the Property Trust Act are imported to apply to corporations (s 10), affecting how the Property Trust and newly constituted corporations operate in parallel.
Superannuation Corporation and Superannuation Fund participants and administrators. The 2005 inserted provisions in Schedule 3 Part 2 dissolve the Superannuation Corporation and abolish the Superannuation Fund and transfer their assets and liabilities to the Property Trust (Sch 3 Part 2 ss 3-5). Persons who were members or beneficiaries of those entities are affected by the abolishment and the transfer of their assets and associated rights and liabilities.
Governor and Registrar‑General. The Governor has the function of proclaiming constitution and dissolution, giving legal effect to the General Assembly’s resolutions (ss 7(3), 8(2)). The Registrar‑General (and other registration/certifying officers) are explicitly mentioned in s 18 as persons who are not required to inquire into whether the corporation has power to deal with property; s 16(2) provides for certificates under seal to be prima facie evidence in applications under the Real Property Act 1900, engaging land registry processes.
Third parties and counterparties. Persons contracting or transacting with a corporation are affected because receipts executed under the seal or signed by the requisite members exonerate payers (s 17), and because an absence of inquiry into power to deal (s 18) and prima facie certificates under seal (s 16) change risk allocation and due diligence practices for transferees, purchasers and registries.
Courts and litigants. The Schedule provides that proceedings pending against a predecessor body are taken to be proceedings pending against the successor (Sch 2 cl 2(c), cl 3(1)(c), cl 4(1)(c)), which affects how plaintiffs and defendants continue or amend litigation, and the handling of judgments, orders or decrees that refer to old entities (Sch 2 cl 1 definitions explicitly include “instrument” and “judgment, order or process of a court”).
Revenue authorities and stamp duty administrators. Schedule 2 cl 6 exempts transfers to corporations under this Schedule from stamp duty, which directly affects revenue computation and compliance for both the transferring and receiving entities.
Who pays and who benefits: beneficiaries of Church trusts and funds stand to gain clarity of title and continuity; the Property Trust becomes the repository for assets of dissolved corporations and abolished funds (Sch 2 cl 4, Sch 3 Part 2). Third parties and registries face altered due diligence dynamics and may rely on certificates or seals without inquiring into internal power (s 16, s 18). Congregations may bear the administrative cost of consent processes where required (s 7(2)). Members and officers face governance duties, disclosure obligations and eligibility restrictions that affect personal capacity to serve (Sch 1 cll 1-4, cl 3).
Key duties and rights
The Act sets out discrete duties for corporate officeholders and corresponding rights for corporations and parties dealing with them. State them with statutory references.
Duties
Disclose and manage conflicts of interest. A member who has an interest in a matter before the corporation must disclose the nature of the interest as soon as possible after becoming aware and must record particulars in a book kept for that purpose, open at reasonable hours for inspection (Sch 1 cl 4(1), (3)). After disclosure, the member must not be present at deliberations or take part in decisions related to that matter unless the corporation otherwise determines (Sch 1 cl 4(4)-(5)).
Maintain minutes and records. Corporations must cause full and accurate minutes of each meeting to be kept (Sch 1 cl 10). The conflict‑of‑interest register must be kept and be available for inspection (Sch 1 cl 4(3)).
Adhere to by‑laws and statutory procedure. By‑laws made by the General Assembly must be consistent with the Act (s 21(3)). Corporations exercise functions in accordance with any by‑law and the General Assembly prescribes methods for membership, appointment and filling vacancies (s 21(2)(b)-(d), s 9, s 10 importing Property Trust Act provisions).
Keep and use the common seal correctly. The seal is to be kept by an officer in safe custody and may be affixed to documents only in accordance with a corporation resolution, in the presence of not fewer than three members, and with attestation by signature of those members (s 14(1)(a)-(c)). Deeds executed under such arrangements are taken to have been properly executed (s 14(2)).
Comply with membership eligibility and vacancy grounds. A member holds office for the term specified in by‑laws and is subject to casual vacancy rules such as bankruptcy, mental incapacity, conviction of serious offences and non‑attendance (Sch 1 cll 1, 3(f), 3(d), 3(e), 3(g)).
Observe delegation rules. Corporations may delegate functions (other than the delegation power) to members or to persons/bodies prescribed by by‑laws; delegations must respect the statutory limitation (s 11).
Rights
Corporate exercise of functions and property management. A corporation may exercise functions conferred by the General Assembly and those exercisable by the unincorporated body that it replaced (s 9). Sections of the Property Trust Act apply to corporations (s 10), thereby affording the corporation the powers and protections those sections confer on the Property Trust.
Indemnity out of vested property. Members and persons exercising functions are entitled to be indemnified out of property vested in the corporation against expenses and liabilities incurred in the exercise in good faith of functions under the Act or by‑laws (s 19(1)(a)). Executors and administrators of such persons share that right (s 19(1)(b)).
Evidentiary presumptions and protection of third parties. Certificates under the corporation’s seal are prima facie evidence of matters certified in legal proceedings and for registration under the Real Property Act 1900 (s 16(1)-(2)). Receipts executed under seal or signed by the requisite number of members exonerate payers from liability for loss or misapplication of money (s 17). Persons dealing with the corporation are not required to inquire into whether the corporation had power to deal with property (s 18).
Continuity of rights and proceedings. On transfer events, the rights, liabilities and proceedings of predecessors become those of successors without conveyance or attornment (Sch 2 cl 2-4). Instruments referring to predecessors are to be read as references to successors (Sch 2 cl 2(e), cl 3(1)(e), cl 4(1)(e)).
Stamp duty exemption. Transfers effected under Schedule 2 are not chargeable with stamp duty (Sch 2 cl 6).
Other operational rights and duties are drawn from by‑laws the General Assembly makes (s 21). By‑laws may set member numbers, election processes, and circumstances for vacancies, which in practice determine governance structure and rights to participate.
Practical legal consequences of these duties and rights include allocation of administrative burdens to maintain minute books and disclosure registers; shifting of evidential burdens in disputes to the party challenging a certified instrument; potential restriction on member participation where conflicts arise; and the use of indemnity funds drawn from trust property rather than personal assets of officeholders. These mechanics also confer advantages to third parties relying on certificates and seals because they may treat those documents as prima facie proof and need not investigate internal powers (s 16, s 18). That reallocation of transactional risk and evidentiary burden is a core feature of the Act’s operation.
Penalties and enforcement
The Act principally uses governance rules, evidentiary presumptions and transfer mechanics rather than creating a detailed enforcement or penalty regime. The statutory text contains almost no express criminal sanctions; instead, it embeds internal remedies and civil mechanisms. Identify the enforcement levers and the absences.
Enforcement levers that are present in the text
Internal governance controls. The General Assembly can make by‑laws controlling membership, management and administration (s 21(1)-(2)). Those by‑laws can prescribe methods of election, appointment and retirement of members and define when vacancies occur and how they are filled (s 21(2)(b)-(d)). Those powers are the primary in‑house enforcement mechanism: compliance with by‑laws is enforced through internal processes such as removal, non‑reappointment, or not filling a vacancy.
Vacancy rules as de‑facto sanction. Schedule 1 sets out events that vacate office: death, non‑reappointment, resignation, bankruptcy, mental incapacity, conviction of an offence punishable by 12 months or more imprisonment, prolonged absence without leave (Sch 1 cl 3). Those rules remove persons from office but are not expressed as penalties beyond disqualification.
Indemnity and exculpation limits. The Act entitles members to indemnity from trust property where they act in good faith (s 19(1)), and Schedule 1 protects members and persons acting under the direction of a corporation from personal liability for things done in good faith for the purpose of executing the Act or other Acts (Sch 1 cl 5). These are protective rather than punitive: they limit personal exposure to suit and therefore influence enforcement dynamics.
Evidentiary presumptions facilitating administrative responses. Certificates under seal are prima facie evidence (s 16). Receipts signed as required exonerate payers (s 17). Those presumptions shape evidentiary burdens in litigation and registration proceedings and function as a procedural enforcement tool favouring presumptive validity of corporate acts.
Non‑inquiry rule. The Registrar‑General and other persons registering or certifying title are not required to inquire into the corporation’s power to deal with property (s 18). That rule prevents parties from challenging transactions at the registry level and channels disputes into post‑transaction remedies.
Enforcement levers that are absent or minimal
Criminal sanctions. The Act contains no express criminal offences tied to breach of its corporate governance provisions (for example, no specific criminal penalties for failing to keep minutes, for failing to disclose conflicts, or for misapplying funds). The only penal consequence expressed is that certain criminal convictions lead to vacancy of office (Sch 1 cl 3(f)); the Act does not itself criminalise the conduct that gave rise to such convictions.
Administrative penalties and statutory fines. There are no express monetary fines, civil penalty regimes, or administrative enforcement powers (for example, no power to impose pecuniary penalties or to direct rectification) in the Act’s text.
Regulatory supervision. No external regulator, inspectorate or ministerial oversight body is created for these corporations in the Act. The Governor’s role is confined to proclaiming constitutions and dissolutions (ss 7(3), 8(2)). The primary regulating entity is instead the General Assembly through by‑laws.
How enforcement is likely to occur in practice, based on the text
Internal enforcement through by‑laws and membership controls. The General Assembly and individual corporations will enforce standards by by‑law discipline, removal, or non‑reappointment under s 21 and Sch 1 rules.
Civil litigation and equitable remedies. Because the Schedule preserves proceedings against successor entities (Sch 2 cl 2(c), cl 3(1)(c), cl 4(1)(c)), disputes over property, contract and fiduciary obligations will be resolved through courts using general civil remedies. The evidentiary presumptions (s 16, s 17) and s 18’s non‑inquiry rule influence litigation strategy and evidentiary burdens in such suits.
Reliance on indemnity and trust property. Where members incur expenses or liabilities acting in good faith, the indemnity in s 19 assigns cost to trust property rather than personal assets, which may blunt the financial impact of enforcement actions against individuals.
Practical enforcement risks and gaps
Because the Act grants indemnities and exonerations (s 19, Sch 1 cl 5, s 18), third parties and beneficiaries may find practical obstacles to recovery where acts were authorised and certified as complying with the Act. The prima facie weight of corporation certificates shifts the initial burden in litigation to the challenger.
The lack of express sanctioning powers or external regulator creates dependence on internal culture and governance competence. Where internal mechanisms fail, civil litigation is the main remedy and that can be costly and slow.
The non‑inquiry rule (s 18) reduces pre‑transaction scrutiny by registries and counterparties, which can accelerate transactions but also creates post‑transaction litigation risk for parties who later question authority or capacity to deal.
For advisers and compliance officers, the practical consequence is to focus on strong by‑laws, thorough record‑keeping (minutes, conflict registers), and insurance or other financial protections to cover liabilities that indemnity out of trust property may not fully meet or that may be challenged on the ground that acts were not in good faith.
How it interacts with other laws
The Act contains multiple express cross‑references and operational interactions with other statutes and legal categories. Map the principal interactions and their legal mechanics.
The Presbyterian Church (New South Wales) Property Trust Act 1936. The Act repeatedly cross‑references and imports provisions of the Property Trust Act. Section 3 uses the Property Trust Act for definitions (the Property Trust is defined as constituted under the Property Trust Act) and s 10 makes specific sections of the Property Trust Act apply to corporations “in the same way as those sections apply to the Property Trust”. The effect is to place corporations constituted under this Act into substantially the same legal framework as the Property Trust for those named headings (s 10). The Act also requires congregation consent in the manner provided under s 12 of the Property Trust Act where appropriate (s 7(2)). Practically, that means lawyers must consult the Property Trust Act to determine the full scope of corporate powers, restrictions and governance provisions imported by s 10.
Real Property Act 1900. Section 16(2) gives certificates under the seal of a corporation prima facie evidentiary effect for the purposes of any application by the corporation to be registered under the Real Property Act 1900 as proprietor of an estate or interest pursuant to vesting. That creates a direct operational interaction between corporation certificates and land registration practice under the Real Property Act.
Stamp duty law. Schedule 2 cl 6 provides that stamp duty is not chargeable in respect of transfers of assets, rights and liabilities to a corporation (including the Property Trust) under the Schedule. That explicit exemption alters the taxation consequence of the automatic vesting that the Schedule effects, and therefore interacts with state revenue administration and stamp duty rules.
Beneficiary Fund Act (repealed). The Act expressly repeals the 1929 Act dealing with the Beneficiary Fund (s 24). The repeal mechanically removes that earlier statutory scheme and replaces the regulatory arrangements with those in this Act and related instruments; any residual rights under the repealed Act must be addressed under the transitional provisions in Schedule 3 or by reference to successor entities.
Statute Law (Miscellaneous Provisions) Act 2005 (and related amendments). The Act has been amended by, and contains savings and transitional provisions consequent on, the Statute Law (Miscellaneous Provisions) Act 2005. Those inserted provisions (Sch 3 Part 2) dissolve the Superannuation Corporation, abolish the Superannuation Fund and transfer assets and liabilities to the Property Trust (Sch 3 Part 2 ss 3-5). The Act also authorises the Governor to make regulations with retrospective or savings provisions consequential on enactment of that amending Act (Sch 3 Part 1 cl 1). Where the Act permits retrospective operation of certain transitional regulations, it limits that retrospective effect to avoid prejudice against persons other than the State (Sch 3 Part 1 cl 3).
Contract and property law. Schedule 2 cl 5 states that the operation of the Schedule is not to be regarded as a breach of contract or confidence, as a breach of contractual prohibitions on assignment, or as an event of default; it further states that operation is not to give rise to remedies because of a change in legal or beneficial ownership. That interacts with private contract law by effectively overriding contractual anti‑assignment clauses and other contractual consequences that would otherwise be triggered by change in ownership. The Schedule therefore displaces private contractual protections that might impede the seamless transfer of rights and obligations to successor entities.
Court proceedings and instruments. The Schedule defines “instrument” to include judgments, orders or processes of a court (Sch 2 cl 1). It provides that pending proceedings continue against successors and that references to predecessors are to be read as references to successors (Sch 2 cl 2(c), cl 3(1)(c), cl 4(1)(c) and cl 2(e), cl 3(1)(e), cl 4(1)(e)). The net effect is to minimise procedural friction in transferring litigation and enforceability of judicial decisions.
Operational implications of these interactions
Title registration practice should accept certified corporation seals as prima facie proof for registration under the Real Property Act 1900 (s 16(2)), but registries benefit from the non‑inquiry rule (s 18) because they are not required to test the corporation’s internal authority. Practitioners should, however, be prepared to produce the underlying resolutions and proclamations to support claims where third parties challenge prima facie certificates.
The stamp duty exemption (Sch 2 cl 6) reduces transactional tax cost for transfers effected under the Schedule; revenue authorities will need to interpret the exemption in light of the Schedule’s “without conveyance” vesting. Practitioners should obtain certainty from revenue authorities where possible.
The Schedule’s override of contractual anti‑assignment and event‑of‑default clauses (Sch 2 cl 5) reduces the risk that transfers to corporations or to the Property Trust will be blocked by contractual mechanisms, but it also means counterparties lose contractual protections; those counterparty interests may pursue remedies in equity or by asserting that the statutory override does not affect non‑statutory rights, which will be litigation questions in the court’s discretion.
Because s 10 imports parts of the Property Trust Act by reference, counsel must read both statutes together; the Act does not replicate the imported provisions and the full ambit of powers and restrictions on corporations will be found in the Property Trust Act text for the listed sections.
Amendment history
The Act’s text carries amending and repealing notes. List and explain the amendments recorded in the source text and their mechanical effects as stated.
Amendments noted to s 3 (definitions). The marginal note states: “s 3: Am 2005 No 64, Sch 1.29 [3]-[5]”. That records that the definitions clause was amended by the Statute Law (Miscellaneous Provisions) Act 2005, schedule 1.29, paragraphs [3]-[5]. The Act as provided reflects those amended definitions (for example, the defined terms Beneficiary Fund, Beneficiary Fund Act, Beneficiary Fund Committee, Superannuation Corporation and Superannuation Fund appear marked as amended).
Repeal of pt 2 div 1 (ss 4-6). The text records: “pt 2, div 1 (ss 4-6): Rep 2005 No 64, Sch 1.29 [6]”. Sections 4-6 were repealed by the 2005 statute.
Amendment to s 19. The marginal note states: “s 19: Am 2005 No 64, Sch 1.29 [7] [8]”. Subsection (2) of s 19 in the present text is marked as repealed; that change was effected by the 2005 amending statute.
Amendment to s 21. The marginal note: “s 21: Am 2005 No 64, Sch 1.29 [9] [10]”. The by‑laws provision was amended by the 2005 Act as recorded.
Insertion of s 25. The marginal note: “s 25: Ins 2005 No 64, Sch 1.29 [11]”. Section 25 (savings, transitional and other provisions) was inserted in 2005; Schedule 3 has effect as a result.
Schedule 1 amendments. The note attached to Schedule 1 reads: “sch 1: Am 1999 No 94, sec 7 (3) and Sch 5, Part 3; 2005 No 64, Sch 1.29 [12]-[20]”. That records amendments to the Schedule by a 1999 statute (No 94) and further amendments by the 2005 Statute Law (Miscellaneous Provisions) Act.
Repeal of ss 22 and 23. The notes indicate: “s 22: Rep 1999 No 85, Sch 4” and “s 23: Rep 1999 No 85, Sch 4”. Sections 22 and 23 were repealed in 1999.
Schedule 3 insertion. The note on Schedule 3 reads: “sch 3: Ins 2005 No 64, Sch 1.29 [21]”. Schedule 3 (savings, transitional and other provisions) was inserted by the 2005 Act.
Part 2 of Schedule 3 (Provisions consequent on enactment of Statute Law (Miscellaneous Provisions) Act 2005) includes defined terms and substantive measures such as dissolution of the Superannuation Corporation (Sch 3 Part 2 s 3), abolition of the Superannuation Fund (s 4), and transfer of assets, rights and liabilities to the Property Trust on dissolution (s 5). Those inserted clauses effect the mechanical consolidation of superannuation assets and liabilities into the Property Trust.
Historical repeal of the Beneficiary Fund Act. Section 24 repeals the 1929 Beneficiary Fund Act. That repeal is an express provision in the Act itself rather than a later amendment, and it removes the earlier statutory framework for the Beneficiary Fund.
What the amendment notes do not state in the body of this text
The marginal notes show the legislative instruments which made changes (dates and schedule citations), but they do not include the full textual content of the repealed or amended provisions in this excerpt. Practitioners must consult the amending statutes (1999 No 85; 1999 No 94; 2005 No 64, Sch 1.29) for the precise historical text, commencement provisions and any transitional regulations made under those instruments.
The Schedule references tell us which parts were altered and roughly when but do not indicate policy debates or explanatory memoranda; the Act text provides the mechanical outcomes only.
For compliance and archival tasks, the amendments show an active statutory evolution with two major sets of modifications at the end of the 1990s and in 2005, including the consolidation of superannuation arrangements into the Property Trust structure and the repeal of the 1929 Beneficiary Fund Act.
Litigation history
The source text does not record or cite any judicial decisions or litigation concerning the Act. There are no cases named in the provided text and no references to judicial interpretation. Accordingly, the Act’s own content must be used to identify the types of disputes that could arise; the source does not supply a litigation history.
Areas where litigation is likely to arise, grounded in the Act’s text
Challenges to the validity of incorporation or dissolution. Because constitution under the Act requires both a General Assembly resolution and a Governor’s proclamation (s 7(1), (3)), disputes could arise about whether required procedural steps were properly taken, including the congregation consent requirement where relevant (s 7(2)). Litigation could involve claims that a proclamation did not correctly identify the body, did not follow the resolution terms, or that procedural preconditions were not satisfied.
Title and registration disputes. The Schedule gives automatic vesting without conveyance (Sch 2 cl 2(a), cl 3(1)(a), cl 4(1)(a)) and provides that registries and third parties are not required to inquire into a corporation’s power to deal (s 18). Litigation may arise where third parties later assert that a transfer was invalid because internal authorisations were defective, or where registries face conflicting claims. The Act shifts initial evidentiary presumptions to corporation certificates (s 16), but that does not preclude disputes over the underlying facts or allegations of fraud, non‑compliance, or bad faith.
Contractual disputes and override of anti‑assignment clauses. Schedule 2 cl 5 states that operation of the Schedule is not to be regarded as a breach of contract, confidence, or as giving rise to remedies on account of change in ownership. Litigants may test the scope of that override, for example, whether the Schedule is intended to displace all private law consequences or only specific classes of contractual rights, and whether equitable remedies can still be sought where the Schedule applies.
Claims against members or officers. The Act provides indemnities and exculpations (s 19, Sch 1 cl 5), but disputes can still be litigated where claimants allege acts were not done in good faith or were ultra vires. Courts may be called upon to determine whether the statutory indemnity or exoneration applies in particular circumstances.
Conflicts of interest and governance challenges. Schedule 1 requires disclosure and separation in decision‑making where conflicts exist (Sch 1 cl 4). Litigation may be pursued by members or beneficiaries alleging breaches of fiduciary duty, failure to disclose, or that decisions tainted by conflicts were voidable. The Schedule’s express provision that contravention of the clause “does not invalidate any decision of the corporation” (Sch 1 cl 4(6)) could itself generate litigation about whether and how decisions can be impugned despite that provision.
Superannuation and beneficiary fund disputes. The repeal of the Beneficiary Fund Act (s 24) and the abolition and transfer of the Superannuation Fund and the Superannuation Corporation (Sch 3 Part 2 ss 3-5) create potential for disputes by former members or beneficiaries about entitlements, transitional rights and the adequacy of transfers to the Property Trust.
What the absence of cases in the source implies for researchers
The source provides no judicial gloss, so interpretive questions that are commonly resolved by case law remain open in the text itself. Practitioners must search external databases for decisions that test the Act’s provisions, especially on evidentiary presumptions (s 16), indemnities (s 19), the non‑inquiry rule (s 18), and the scope of Schedule 2 cl 5’s override of contractual consequences.
Where litigation does occur, courts will be asked to reconcile the Act’s protective presumptions and indemnities with general principles of contract, property and fiduciary law. Until such decisions are located, the Act’s textual presumptions dominate the landscape but may be subject to judicial qualification.
Gotchas
Practical traps and points of friction that arise from the Act’s mechanics and language. Each item below is grounded in the statute’s text and explains the concrete legal mechanism that causes the risk.
Dual‑step constitution and dissolution. A General Assembly resolution alone does not create corporate personality; the Governor’s proclamation is required (s 7(1), (3)). Parties who assume that an internal resolution equates to legal existence risk transacting with an entity that has no separate legal personality until proclamation. Conversely, reliance on the proclamation date is essential because vesting and transfer consequences in Schedule 2 are tied to the proclamation or its specified effective date (s 7(4), Sch 2 cl 3(1)).
Congregation consent requirement can stall local initiatives. Where an unincorporated body is for congregational activity, congregation consent is mandatory and must follow s 12 of the Property Trust Act (s 7(2)). Practically, this adds an extra procedural step; solicitors and advisors must trace the Property Trust Act procedure rather than assuming simple board approval suffices.
Automatic vesting without conveyance can create registration mismatches. Schedule 2 vests assets in successors by operation of law without conveyance (Sch 2 cl 2(a), cl 3(1)(a), cl 4(1)(a)). While convenient, that can leave land title records showing prior proprietors until applications are made under the Real Property Act 1900, and registries may require production of corporate certificates (s 16(2)). The absence of conveyance can complicate dealings where evidence of marketable title is required.
Non‑inquiry protection narrows defensive due diligence. Section 18 says that those dealing with corporations and the Registrar‑General need not inquire into the corporation’s power to deal with property. That shifts the risk of defective internal authorisation away from registries and onto challengers, but it also means that counterparties who normally investigate authority must rely on prima facie documents (s 16). The “gotcha” is that problems are often resolved after the fact by litigation rather than pre‑transactional negotiation.
Prima facie certificates and receipts reduce evidentiary hurdles but create an evidentiary asymmetry. Certificates under seal are prima facie evidence (s 16), and certain receipts exonerate payers (s 17), meaning that challengers carry an initial burden to rebut the presumption. This can lengthen and increase the cost of disputes and can frustrate persons who lack access to documentary evidence to rebut a certificate.
Contractual protections may be overridden. Schedule 2 cl 5 states that the schedule’s operation is not to be regarded as breach of contract or as triggering contractual prohibitions on assignment or remedies. Counterparties relying on anti‑assignment clauses or change‑of‑control triggers may find those protections ineffective when transfers are effected under the Schedule. Advisers must review contracts to identify whether protections survive statutory transfers or whether contractual drafting can build in alternative safeguards (for example, retention of benefits rather than assignment triggers).
Indemnity out of trust property limits personal recovery. Section 19 entitles members to indemnity from property vested in the corporation where they acted in good faith. Creditors or claimants seeking compensation from individual officeholders may find that indemnity shifts recovery to trust property (where available) and reduces direct recourse to personal assets. Where trust property is insufficient, claimants may face practical difficulty in executing judgments.
Limited external enforcement regime. The Act has no express fines, criminal offences (other than vacancy consequences tied to prior convictions), or an external regulator. Where internal governance fails, remedies are primarily civil and can be slow and expensive. Advisers should not assume there is an administrative complaint path beyond internal by‑laws and courts.
Conflict of interest register is open to public inspection. Schedule 1 requires the particulars of disclosures to be recorded in a book and that the book “must be open at all reasonable hours to inspection by any person” (Sch 1 cl 4(3)). That statutory openness can create confidentiality and privacy issues because third parties can demand to inspect the register, potentially exposing sensitive information about members’ external dealings.
Repeal of older Acts and transitional complexity. The Act repeals the 1929 Beneficiary Fund Act (s 24) and, following amendments, dissolves the Superannuation Corporation and abolishes the Superannuation Fund (Sch 3 Part 2 ss 3-4). These changes create transitional rights and obligations that require careful attention to Schedule 3. Advisers must examine the transitional schedule for specific savings and regulatory directions rather than assuming an automatic carryover of rights.
Absence of express provision for certain modern governance features. The Act’s procedural provisions (for example, quorum = one‑third of members (Sch 1 cl 7(1))) and the requirement for three members to attest seals (s 14) are somewhat prescriptive. The Act does not address modern governance mechanisms such as electronic execution or virtual meetings; by‑laws might fill those gaps but only within the constraint that by‑laws must be consistent with the Act (s 21(3)). Practitioners should ensure by‑laws explicitly authorise contemporary practices where desired.
These “gotchas” arise directly from the statutory text and produce practical compliance and risk allocation issues that Church bodies, their legal advisers and counterparties need to identify and manage proactively.
How to comply
A practitioner‑focused checklist of concrete steps and documentation to ensure statutory compliance and to reduce legal risk. Each step is grounded in the Act’s provisions.
Verify scope and status of the body. Confirm whether the entity targeted for incorporation fits the Act’s definition of an “unincorporated body of the Church” (s 3). If it is a congregation‑related body, confirm whether the congregation’s consent as required under s 12 of the Property Trust Act has been obtained or can be obtained (s 7(2)). Document the chain of authority within the General Assembly authorising the resolution.
Secure a General Assembly resolution. Prepare a resolution that names the unincorporated body and sets out the corporate name to be used (s 7(1)). Record the resolution in the General Assembly minutes and retain evidence of resolution procedures and votes.
Obtain Governor’s proclamation. Work with the appropriate State authorities to have the Governor effect the proclamation once the General Assembly resolution is passed (s 7(3)). Be explicit about the effective date to ensure clarity about when the corporation comes into existence and when Schedule 2 vesting consequences attach (s 7(4), Sch 2 cl 3(1)).
Prepare by‑laws in advance or promptly after incorporation. Ensure by‑laws made by the General Assembly address the matters listed in s 21(1) and (2) and are consistent with the Act (s 21(3)). Include provisions on:
Number of members, terms of office and eligibility (Sch 1 cl 1; s 21(2)(b)).
Methods of election, appointment and retirement (s 21(2)(c)).
Vacancy events and filling procedures (s 21(2)(d); Sch 1 cl 3).
Delegation procedures permitted under s 11, including persons or bodies authorised by by‑laws for delegation.
Contemporary governance mechanisms (electronic communications, meeting notices, proxy rules) to the extent they are compatible with the Act.
Maintain statutory registers and minutes. Keep a minute book that records full and accurate minutes of each meeting (Sch 1 cl 10). Maintain the conflict of interest register in the form required by Sch 1 cl 4(3); remember the register must be open to inspection by any person at reasonable hours, so implement processes to manage privacy and redaction where necessary consistent with the statutory requirement.
Implement common seal and execution procedures. Appoint an officer to keep the corporate seal in safe custody (s 14(1)). Put in place procedural rules requiring a resolution to authorise affixing the seal, presence of at least three members to attest (s 14(1)(a)-(c)) and signatures to attest the sealing. If the corporation intends to appoint agents to execute under the corporation’s seal, prepare formal written powers under seal describing the scope of agency for specific matters (s 15(1)-(2)).
Manage conflicts of interest. Train members on disclosure obligations and the consequences of participation following disclosure (Sch 1 cl 4). Ensure the corporation’s procedures require immediate disclosure of interests, recording in the register, and exclusion from deliberation and voting unless the corporation specifies otherwise (Sch 1 cl 4(1), (3)-(5)).
Use certificates and receipts correctly. When making applications for land registration, rely on s 16(2) by preparing sealed certificates stating vesting of estate or interest and keep supporting evidence (s 16). For receipts, ensure they are executed under seal or signed by not fewer than three members or by persons duly authorised by the corporation, to avail of the exoneration in s 17.
Plan for automatic vesting and transfer consequences. Recognise that on constitution or dissolution assets, rights and liabilities vest by operation of Schedule 2 without conveyance (Sch 2 cl 2(a), cl 3(1)(a), cl 4(1)(a)). Prepare internal asset registers and coordinate with the Property Trust and land registries to apply for any necessary registration changes under the Real Property Act 1900, using s 16(2) certificates when appropriate.
Check stamp duty positions. Where transfers occur under Schedule 2, rely on the stamp duty exemption in Sch 2 cl 6 but document the statutory basis and, where prudent, obtain a private ruling or written confirmation from the relevant revenue authority to avoid later assessment disputes.
Address contractual language. Review existing contracts for anti‑assignment or change‑of‑control clauses. Because Schedule 2 cl 5 provides that operation of the Schedule is not to be regarded as a breach of contract or as giving rise to remedies for change in ownership, consider whether contractual amendments are needed to preserve commercial protections, and advise counterparties accordingly.
Insure where indemnities may be insufficient. Even though s 19 provides indemnity from trust property for persons acting in good faith, trustees and members should consider Directors and Officers (D&O) insurance or similar cover to address liabilities that might not be recoverable from trust property or to provide defence costs pending indemnity recovery.
Address transitional matters for superannuation and beneficiary funds. If the corporation or parties were involved with the Superannuation Corporation, Superannuation Fund or the Beneficiary Fund, review Schedule 3 Part 2 and s 24 to determine the effect of dissolution, abolition and repeal, and secure documentary evidence of the statutory transfers to the Property Trust (Sch 3 Part 2 ss 3-5, s 24).
Prepare for absence of external regulator. Because the Act relies primarily on internal governance, establish robust internal audit, regular reporting to the General Assembly, and independent review procedures to avoid governance lapses that could lead to litigation.
Keep evidence of good faith acts and decision‑making. To ensure entitlement to indemnities and to defend against claims that acts were not in good faith, keep contemporaneous records demonstrating decisions were made for authorised Church purposes, with minutes, conflict disclosures and other supporting documents.
Following these steps aligns corporate practices with statutory obligations and uses the Act’s evidentiary and transfer mechanisms to reduce transactional friction. Where particular transactions are commercially sensitive or involve complex property or contractual structures, obtain specialist advice on land registration, revenue rulings and potential litigation risk because the Act’s presumptions (s 16, s 18, Sch 2 cl 5) materially affect those areas.
(b) any other body established for the purpose of an activity, fund, service, institution or interest of the Church generally or a congregation of the Church.
s 3: Am 2005 No 64, Sch 1.29 [3]–[5].
Part 2 Corporations
Part 2 Corporations
Part 2 Corporations
Division 1
Division 1
4–6 (Repealed)
pt 2, div 1 (ss 4–6): Rep 2005 No 64, Sch 1.29 [6].
Division 2 Other corporations
Division 2 Other corporations
Division 2 Other corporations
7 Power to constitute corporations
7 Power to constitute corporations
7 Power to constitute corporations
(1) The General Assembly may, by resolution, declare that an unincorporated body of the Church named in the resolution should be constituted as a corporation under the name set out in the resolution.
(2) If the unincorporated body of the Church named in the resolution is a body established for the purpose of an activity, fund, service, institution or interest of a congregation of the Church, the General Assembly must not pass a resolution under subsection (1) unless the congregation consents to the resolution in the manner provided under section 12 of the Property Trust Act.
(3) If such a resolution is passed, the Governor may, by proclamation, declare that the unincorporated body of the Church named in the resolution is constituted as a corporation.
(4) On and from the date of such proclamation (or from such later date as may be specified in the proclamation), the unincorporated body named in the proclamation is by the proclamation constituted as a corporation under the corporate name set out in the proclamation.
8 Power to dissolve corporations
8 Power to dissolve corporations
8 Power to dissolve corporations
(1) The General Assembly may, by resolution, declare that a corporation constituted under this Division should be dissolved.
(2) If such a resolution is passed, the Governor may, by proclamation, declare that the corporation named in the resolution is dissolved.
(3) On and from the date of such proclamation (or from such later date as may be specified in the proclamation), the corporation named in the proclamation is dissolved.
9 Functions of corporations
9 Functions of corporations
9 Functions of corporations
A corporation constituted under this Division may exercise the functions conferred or imposed by the General Assembly on:
(a) the corporation, or
(b) the unincorporated body of the Church that was constituted as the corporation.
Division 3 General provisions relating to corporations
Division 3 General provisions relating to corporations
Division 3 General provisions relating to corporations
10 General functions of corporations
10 General functions of corporations
10 General functions of corporations
Sections 10, 10A, 10B, 12, 14, 15, 19, 20, 21, 21A, 21B and 23 of the Property Trust Act apply in respect of a corporation in the same way as those sections apply to the Property Trust under the Property Trust Act.
11 Delegation of functions
11 Delegation of functions
11 Delegation of functions
A corporation may delegate any of its functions (other than this power of delegation) to:
(a) any member of the corporation, or
(b) any other person or body prescribed by the by-laws.
12 Membership and procedure of corporations
12 Membership and procedure of corporations
12 Membership and procedure of corporations
Schedule 1 has effect with respect to the membership and procedure of a corporation.
13 Transfer of assets, rights and liabilities
13 Transfer of assets, rights and liabilities
13 Transfer of assets, rights and liabilities
Schedule 2 has effect.
Part 3 Administrative provisions
Part 3 Administrative provisions
Part 3 Administrative provisions
14 Common seal
14 Common seal
14 Common seal
(1) The seal of a corporation is to be kept by an officer of the corporation in safe custody, and is to be affixed to a document only:
(a) in accordance with a resolution of the corporation, and
(b) in the presence of not fewer than 3 members of the corporation, and
(c) with an attestation by the signatures of those members of the fact of the affixing of the seal.
(2) An instrument purporting to have been sealed with the seal of the corporation and to have been signed by not fewer than 3 members of the corporation is taken to have been executed in accordance with this section.
15 Execution under seal by agent
15 Execution under seal by agent
15 Execution under seal by agent
(1) A corporation may, by writing under its seal, expressly empower any person, in respect of any specific matter, to execute any deed, instrument, contract or agreement on its behalf as its agent or attorney.
(2) Any deed signed by such an agent or attorney under his or her seal on behalf of a corporation binds the corporation and has the same effect as if it were under the seal of the corporation.
16 Evidence
16 Evidence
16 Evidence
(1) A certificate under the seal of a corporation to the effect that property specified in the certificate is vested in the corporation in trust for:
(a) the Church generally, or
(b) any congregation of the Church, or
(c) the purposes of an activity, fund, service, institution or interest of the Church,
is, in any legal proceedings, prima facie evidence of the matters so certified.
(2) A certificate under the seal of a corporation to the effect that the estate or interest of a person specified in the certificate in land so specified is an estate or interest vested in the corporation by this Act is, for the purposes of any application by the corporation to be registered under the Real Property Act 1900 as the proprietor of that estate or interest pursuant to the vesting, prima facie evidence of the matters so certified.
17 Receipt for certain money
17 Receipt for certain money
17 Receipt for certain money
A receipt for money paid to a corporation that:
(a) is executed under the seal of the corporation, or
(b) is in writing signed by not less than 3 members of the corporation, or
(c) is in writing signed by a person or persons purporting to be duly authorised for the purpose by the corporation,
exonerates the person by whom or on whose behalf the money is paid from any liability for the loss, misapplication or non-application of the money.
18 Exoneration from inquiry
18 Exoneration from inquiry
18 Exoneration from inquiry
If a corporation acquires, disposes of or otherwise deals with property, it is not necessary for:
(a) any other person who is a party to any such dealing, or
(b) the Registrar-General or any other person registering or certifying title to the property,
to inquire whether the corporation has power to so deal with the property.
19 Indemnification of certain persons
19 Indemnification of certain persons
19 Indemnification of certain persons
(1) The following persons are entitled to be indemnified out of property vested in a corporation against all expenses and liabilities incurred in the exercise of a function in good faith in relation to property vested in the corporation in accordance with this Act or any by-law:
(a) a member of the corporation and any other person exercising such a function,
(b) the executor or administrator of any such member or person.
(2) (Repealed)
s 19: Am 2005 No 64, Sch 1.29 [7] [8].
20 Service of documents
20 Service of documents
20 Service of documents
Any document may be served on a corporation by delivering it to, or sending it by post to, the secretary of the corporation, or any person appearing to be authorised by the corporation to accept service.
21 By-laws
21 By-laws
21 By-laws
(1) The General Assembly may make by-laws for or with respect to the following matters:
(a) the control, management and administration of, and dealings with, property vested in a corporation,
(b) the manner in which a corporation is constituted,
(c) the affairs of the corporation.
(2) Without limiting the generality of subsection (1), the General Assembly may make by-laws:
(a) to change the name of the corporation, and
(b) to fix the number of members of the corporation, and
(c) to prescribe the methods of election, appointment and retirement of such members, and
(d) to prescribe the circumstances in which a vacancy in the office of any such member is taken to occur and how it is to be filled.
(3) A by-law must be consistent with this Act.
(4) A certificate under the seal of the corporation to the effect that a by-law specified in the certificate was in force on a day specified in the certificate is prima facie evidence that the by-law was in force on that day.
(5) A by-law may be amended or repealed by a subsequent by-law made under this section.
s 21: Am 2005 No 64, Sch 1.29 [9] [10].
Part 4 Miscellaneous
Part 4 Miscellaneous
Part 4 Miscellaneous
22
22, 23 (Repealed)
22
s 22: Rep 1999 No 85, Sch 4.
s 23: Rep 1999 No 85, Sch 4.
24 Repeal of Act relating to the Beneficiary Fund of the Presbyterian Church of Australia in New South Wales
24 Repeal of Act relating to the Beneficiary Fund of the Presbyterian Church of Australia in New South Wales
24 Repeal of Act relating to the Beneficiary Fund of the Presbyterian Church of Australia in New South Wales
The Act entitled “An Act to validate certain arrangements, acts, and regulations heretofore entered into, done and made, relating to the Beneficiary Fund of the Presbyterian Church of Australia in the State of New South Wales, and to confer upon the General Assembly of the said Church power to regulate and control the said Fund in all respects, including membership, basis or rate of contribution, and other conditions of the same, and to extend the benefits of the said Fund to persons not resident in the said State; and for other incidental purposes”, assented to on 5 April 1929, is repealed.
25 Savings, transitional and other provisions
25 Savings, transitional and other provisions
25 Savings, transitional and other provisions
Schedule 3 has effect.
s 25: Ins 2005 No 64, Sch 1.29 [11].
Schedule 1 Provisions relating to membership and procedure of corporations
Schedule 1 Provisions relating to membership and procedure of corporations
Schedule 1 Provisions relating to membership and procedure of corporations
(Section 12)
sch 1: Am 1999 No 94, sec 7 (3) and Sch 5, Part 3; 2005 No 64, Sch 1.29 [12]–[20].
1 Term of office of members
1 Term of office of members
1 Term of office of members
Subject to this Schedule, a member of a corporation holds office for such period as may be specified in the by-laws, but is eligible (if otherwise qualified) for reappointment.
2 Filling of vacancy in office of member
2 Filling of vacancy in office of member
2 Filling of vacancy in office of member
If the office of any member of a corporation becomes vacant, a person is to be appointed to fill the vacancy in accordance with the by-laws.
3 Casual vacancies
3 Casual vacancies
3 Casual vacancies
The office of a member of a corporation becomes vacant if the member:
(a) dies, or
(b) completes a term of office and is not reappointed, or
(c) resigns the office by instrument in writing addressed to the corporation, or
(d) becomes bankrupt, applies to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounds with his or her creditors or makes an assignment of his or her remuneration for their benefit, or
(e) becomes a mentally incapacitated person, or
(f) is convicted in New South Wales of an offence that is punishable by imprisonment for 12 months or more or is convicted elsewhere than in New South Wales of an offence that, if committed in New South Wales, would be an offence so punishable, or
(g) is absent from 3 consecutive meetings of the corporation of which reasonable notice has been given to the member, except on leave granted by the corporation or unless, before the expiration of 4 weeks after the last of those meetings, the member is excused by the corporation for having been absent from the meetings.
(h) (Repealed)
4 Conflict of interests
4 Conflict of interests
4 Conflict of interests
(1) If:
(a) a member of a corporation has an interest in a matter being considered or about to be considered at a meeting of the corporation, and
(b) the interest appears to raise a conflict with the proper performance of the member’s duties in relation to the consideration of the matter,
the member must, as soon as possible after the relevant facts have come to the member’s knowledge, disclose the nature of the interest at a meeting of the corporation.
(2) A disclosure by a member at a meeting of the corporation that the member:
(a) is a member, or is in the employment, of a specified company or other body, or
(b) is a partner, or is in the employment, of a specified person, or
(c) has some other specified interest relating to a specified comp
This is an opening excerpt, not the complete document.