Young Men’s Christian Association of Sydney Incorporation Act 1906
In ForceNSW
Jurisdiction
New South Wales
Act Number
ymc of 1906
Collection
act
Plain English Summary
3/10 complexity
This Act creates the Young Men’s Christian Association of Sydney as a corporate body, vests its present and future property in that body and sets its objects (including promoting Christian belief and the welfare of young people). It authorises the board to manage and dispose of property, invest and borrow, enter contracts, employ staff and run branches. The board makes most operational decisions; constitutional changes require board and voting-member two‑thirds approval. Voting members pay subscriptions and land sales by resolution bind purchasers without enquiry into the application of sale proceeds (s8).
This Act constitutes the Young Men’s Christian Association of Sydney as a body corporate under New South Wales law. Section 2 establishes the corporation, comprising all persons who were full members or associates of the unincorporated association known as the New South Wales Young Men’s Christian Association, together with those who later become voting members or associate members under the Act or the articles of constitution. Section 3 gives the body corporate the name “Young Men’s Christian Association of Sydney”, perpetual succession, a common seal, and capacity to sue and be sued in all courts.
The Act vests all real and personal property previously held in trust for the association in the new corporation. Section 6(1) transfers such property automatically and divests former trustees, while section 6(2) discharges those trustees from liabilities arising from the transfer. The Act also confers general corporate powers. Section 7(1) permits the corporation to purchase, exchange, lease, hold, dispose of and otherwise deal with property for its purposes, and to do all things bodies corporate may do that are necessary or incidental to those purposes. Section 7(2) lists specific powers: affiliation with other bodies, borrowing money, securing debts, fundraising, construction works, providing accommodation, permitting occupation of property, dealing in goods, employing staff, undertaking trusts, and entering contracts.
The Act establishes the board of directors as the governing body. Section 5 provides that the corporation and its property “shall be governed, managed, and disposed of” by the board, subject to the articles of constitution. Section 8 sets a mandatory procedure for selling real property: the proposal must be submitted to an ordinary board meeting, then at the next ordinary meeting with at least seven days notice it must be approved by a two-thirds majority of those present. A sealed copy of the resolution is conclusive evidence of compliance, and a purchaser is not bound to see to the application of the purchase money.
Current sections
Direct links to the current provisions in Young Men’s Christian Association of Sydney Incorporation Act 1906.
In this Act, except in so far as the context or subject-matter otherwise indicates or requires:
associate member means a person who:
(a) is a member, not being a voting member, of a centre or branch within the Association, or
(b) is admitted as an associate member of the Association by the board of directors.
Association means the Young Men’s Christian Association of Sydney.
voting member means a person who:
(a) subscribes to the objects of the Association,
(b) has paid such subscriptions and levies as the board of directors requires, from time to time, to be paid by a voting member, and
(c) is admitted as a voting member of the Association by the board of directors.
young people means young men and young women.
s 1A: Ins 1976 No 60, Sch 1 (1).
2
Association incorporated
2 Association incorporated
2 Association incorporated
A body corporate is hereby constituted which shall consist of all persons who are now full members or associates of the association known as the New South Wales Young Men’s Christian Association, and and all other persons who may hereafter, in pursuance of this Act, or of the articles of the constitution referred to herein, become full members, associates, voting members or associate members of the said body corporate.
s 2: Am 1976 No 60, Sch 1 (2).
3
Name and powers
3 Name and powers
3 Name and powers
The body corporate, so constituted as aforesaid, shall be known by the name of the Young Men’s Christian Association of Sydney, and by that name shall have perpetual succession and a common seal, and may sue and be sued or otherwise appear and answer, be answered, or proceed, or be proceeded against in all courts.
3A
Objects
3A Objects
3A Objects
The objects of the Association are:
(a) to promote and further Christian beliefs and Christian living,
(b) to promote and further the spirit of the declaration adopted in Paris in 1855, known as the “Paris Basis”, which is as follows:
The Young Men’s Christian Associations seek to unite those young men who, regarding Jesus Christ as their God and Saviour according to the Holy Scriptures, desire to be His disciples in their faith and in their life, and to associate their efforts for the extension of His Kingdom amongst young men.
(c) to promote the spiritual, mental, moral, social, physical and material well-being of young people generally and to assist them to become Christians in faith and practice and active members of the Christian Church,
(d) to remain a member of The National Council of Young Men’s Christian Associations of Australia,
(e) to promote the interests of the Young Men’s Christian Association movement,
(f) to procure and provide facilities, including effective trained leadership, enabling young people to become associated in groups,
(g) to procure and provide educational, cultural and recreational facilities for young people,
(h) to promote and encourage the training of leaders of youth groups and other social workers interested in the welfare of young people,
(i) to provide facilities enabling young people in poor circumstances to participate in any activity or youth group,
(j) to promote an awareness in the community of:
(i) the needs of young people as members of society and of the place and value of group programmes in the satisfaction of those needs, and
(ii) the needs of society in respect of the effective participation of young people,
(k) to promote and form branches or youth centres in metropolitan, urban or suburban areas and to exercise supervision over those branches or centres,
(l) to act as an advisory body and to assist any organisation on matters relating to young people,
(m) to make representations for the advancement and betterment of young people, and
(n) to acquire and disseminate information relating to any facet of the behaviour of young people.
s 3A: Ins 1976 No 60, Sch 1 (3).
4
Articles of constitution of the association, and amendment thereof
4 Articles of constitution of the association, and amendment thereof
4 Articles of constitution of the association, and amendment thereof
(2) Any proposed addition to or alteration of the said articles shall be submitted in writing at an ordinary meeting of the board of directors, and received without discussion.
(3) At the next ordinary meeting of the board of directors, of which not less than fourteen days notice shall have been given, such proposed addition to or alteration of the said articles shall be open for discussion or amendment, and the proposed addition or alteration, or any amendment thereof, if approved by not less than two-thirds of those present when the motion is put (excluding the chairman of the meeting for the time being), shall be submitted to a special meeting of the voting members for confirmation.
(4) The proposed addition to or alteration of the said articles shall be submitted to a special meeting of the voting members, and if approved by not less than two-thirds of such members present when the motion is put (excluding the chairman for the time being), shall be embodied in the said articles.
(5) Any article of the constitution opposed to the provisions of this Act shall be absolutely null and void.
(6) (Repealed)
s 4: Am 1976 No 60, Sch 1 (4).
5
The association and its property to be governed by board of directors
5 The association and its property to be governed by board of directors
5 The association and its property to be governed by board of directors
The body corporate and its property shall be governed, managed, and disposed of by the board of directors for the time being, subject to the articles of the constitution hereinbefore referred to or made under the provisions of this Act.
s 5: Am 1976 No 60, Sch 1 (5).
6
Property of the New South Wales Young Men’s Christian Association vested in the body corporate
6 Property of the New South Wales Young Men’s Christian Association vested in the body corporate
6 Property of the New South Wales Young Men’s Christian Association vested in the body corporate
(1) All real and personal property which is now or may hereafter at any time be vested in or held by any person in trust for or on behalf of the association known as the Young Men’s Christian Association of Sydney (including the lands described in the Schedule hereto) is and shall be hereby transferred to and vested in the said body corporate; and all other persons are hereby divested of any such property of which they are seized or possessed, and all rights accrued or accruing to any person on behalf of such association are hereby vested in and may be enforced by, and all liabilities of the said association, or of any person on behalf of the said association, may be enforced against the said body corporate.
(2) The trustees in whom is vested any such real or personal property are hereby discharged from all liabilities which they may have incurred by reason of the transfer of the management or control of such real or personal property or by reason of any acts done by them in connection with such transfer.
7
Additional powers of the body corporate
7 Additional powers of the body corporate
7 Additional powers of the body corporate
(1) The body corporate may, for the purposes for which it is constituted, purchase, exchange, take on lease, hold, dispose of and otherwise deal with any real or personal property and may do and suffer all other things that bodies corporate generally may, by law, do and suffer and that are necessary for or incidental to the purposes for which it is constituted.
(2) Without limiting the generality of subsection (1), the body corporate may, for the purposes for which it is constituted, do any one or more of the following:
(a) affiliate with any corporate or unincorporate body,
(b) borrow or raise money,
(c) secure the repayment of any money or of any debt or liability or the performance of any contract or agreement,
(d) raise funds by means of public appeal or otherwise,
(e) construct, maintain, alter or rebuild any house, building or work,
(f) carry out works on any of its property,
(g) provide accommodation on any of its property,
(h) permit the occupation or use of any of its property by any person upon such terms and conditions as it may from time to time determine either generally or in a particular case,
(i) purchase, sell, supply or otherwise deal in any provisions or goods,
(j) appoint and employ officers and employees,
(k) undertake and execute any trust, and
(l) enter into and execute any contract or agreement.
s 7: Subst 1976 No 60, Sch 1 (6).
8
Mode of dealing with property
8 Mode of dealing with property
8 Mode of dealing with property
The board of directors shall deal with or dispose of any real or personal property vested in the said body corporate, in such manner as they think fit, but subject, in the case of a sale of real property, to the following conditions, namely:
(a) Any proposed sale of such real property shall be submitted in the first instance to an ordinary meeting of the board of directors.
(b) At the next ordinary meeting of the board of directors, of which not less than seven days notice shall have been given, such proposed sale of such real property shall be submitted to the meeting, and if approved of by not less than two-thirds of those present when the motion is put, may be carried into effect by the board of directors.
(c) (Repealed)
(d) A copy of the resolution of the board of directors, directing such sale of such real property if sealed with the seal of the said body corporate, shall be conclusive evidence in favour of any person claiming by, through, or under such sale that such resolution has been duly passed in compliance with the provisions of this Act, and of the articles of the constitution.
(e) No purchaser, or any person claiming such real property, or any portion thereof, or any interest therein, in pursuance of such resolution shall be bound to see to the application of any moneys paid by him in respect of such sale of such real property.
s 8: Am 1976 No 60, Sch 1 (7).
9
Power to invest funds
9 Power to invest funds
9 Power to invest funds
It shall be lawful for the board of directors, from time to time, to invest any funds of the said body corporate which are not in the opinion of the said board required to defray the current expenses of the body corporate, and any moneys given or bequeathed to or arising from any donation of real or personal property to the body corporate, at the discretion of such board, in any Government funds or debentures of the Commonwealth of Australia, or of any state of the Commonwealth, or in any debentures or debenture stock of any municipal corporation in the said states, or by way of purchase of, or mortgage upon any freehold estate there, as well as in bank deposits for fixed periods or otherwise.
10
Certified copy of articles of the constitution to be evidence
10 Certified copy of articles of the constitution to be evidence
10 Certified copy of articles of the constitution to be evidence
A printed copy of the articles of the constitution, sealed with the seal of the said body corporate, and purporting to be certified by the president or one of the vice-presidents for the time being of the said body corporate as being correct, shall be received in all courts as conclusive evidence that the said articles are the articles of the constitution of the said association on the date on which such certificate purports to be made, and that such articles have been duly made under the provisions of this Act.
11
Common seal
11 Common seal
11 Common seal
It shall be lawful for the board of directors to design at any time and to change or alter the common seal of the said body corporate; such seal shall be in the custody of the executive director. The fixing of the said common seal to any document shall not be complete without the signature of three members of the board of directors: Provided that it shall not be necessary to require such seal to be affixed as evidence of the appointment by the said body corporate of an attorney, solicitor, or proctor in or for the prosecution or defence of any action, suit, or other proceeding.
s 11: Am 1976 No 60, Sch 1 (8).
12
Service upon the body corporate
12 Service upon the body corporate
12 Service upon the body corporate
Notice to or service upon the executive director or acting executive director of the said body corporate in his official capacity shall be deemed to be a notice to or service upon the said body corporate.
s 12: Am 1976 No 60, Sch 1 (9).
13
Repeal of Act does not affect operation of savings and transitional provisions
13 Repeal of Act does not affect operation of savings and transitional provisions
13 Repeal of Act does not affect operation of savings and transitional provisions
ALL that piece or parcel of land situated at Sydney, parish of Alexandria, county of Cumberland, and State of New South Wales, and being the balance of lot number one, section eighteen, since the alignment of Pitt and Bathurst streets: Commencing at the junction of western side of Pitt-street with northern side of Bathurst-street; thence bounded on the north-east by Pitt-street, bearing north six degrees thirteen minutes west distance sixty feet and half an inch; thence on the north by number two allotment, bearing south eighty-one degrees fifty minutes west distance seventy-six feet four and a half inches, and south eighty-three degrees west distance sixty-one feet five and a half inches; thence on south-west by a line bearing south two degrees forty-nine minutes east distance forty-eight feet nine and a half inches to Bathurst-street; thence on the south-east by that street, bearing north eighty-seven degrees east distance one hundred and forty feet eleven and a half inches, to point of commencement,—be the said several dimensions a little more or less.
Schedule 2
Schedule 2
Second Schedule (Repealed)
Second Sch: Rep 1976 No 60, Sch 1 (10).
Source text
Sourced from legislation.nsw.gov.au, CC BY 4.0.
1 Name of Act
1 Name of Act
1 Name of Act
This Act may be cited as the Young Men’s Christian Association of Sydney Incorporation Act 1906.
1A Definitions
1A Definitions
1A Definitions
In this Act, except in so far as the context or subject-matter otherwise indicates or requires:
associate member means a person who:
(a) is a member, not being a voting member, of a centre or branch within the Association, or
(b) is admitted as an associate member of the Association by the board of directors.
Association means the Young Men’s Christian Association of Sydney.
voting member means a person who:
(a) subscribes to the objects of the Association,
(b) has paid such subscriptions and levies as the board of directors requires, from time to time, to be paid by a voting member, and
(c) is admitted as a voting member of the Association by the board of directors.
young people means young men and young women.
s 1A: Ins 1976 No 60, Sch 1 (1).
2 Association incorporated
2 Association incorporated
2 Association incorporated
A body corporate is hereby constituted which shall consist of all persons who are now full members or associates of the association known as the New South Wales Young Men’s Christian Association, and and all other persons who may hereafter, in pursuance of this Act, or of the articles of the constitution referred to herein, become full members, associates, voting members or associate members of the said body corporate.
s 2: Am 1976 No 60, Sch 1 (2).
3 Name and powers
3 Name and powers
3 Name and powers
The body corporate, so constituted as aforesaid, shall be known by the name of the Young Men’s Christian Association of Sydney, and by that name shall have perpetual succession and a common seal, and may sue and be sued or otherwise appear and answer, be answered, or proceed, or be proceeded against in all courts.
3A Objects
Investment powers are limited. Section 9 permits the board to invest funds not needed for current expenses only in government funds or debentures of the Commonwealth or any state, debentures of municipal corporations, freehold mortgages, or bank deposits for fixed periods or otherwise. This narrow range precludes investment in equities, managed funds, or private enterprises.
The Act defines membership categories. Section 1A defines “voting member” as a person who subscribes to the objects, pays required subscriptions and levies, and is admitted by the board. “Associate member” means a non-voting member of a branch or centre, or a person admitted as an associate by the board. The objects are set out in section 3A, inserted in 1976, and include promoting Christian beliefs and Christian living, the Paris Basis, the spiritual and material well-being of young people, education and recreation, and advocacy.
Section 4 governs amendment of the articles of constitution. Proposed additions or alterations must be submitted in writing at an ordinary board meeting without discussion, then considered at the next ordinary meeting with at least fourteen days notice, where they may be discussed and amended. If approved by two-thirds of board members present, the proposal goes to a special meeting of voting members. If approved by two-thirds of voting members present, it is embodied in the articles. Any article inconsistent with the Act is void.
Main concepts
Association means the body corporate constituted under section 2, known as the Young Men’s Christian Association of Sydney. This is a statutory corporation, not one registered under the Corporations Act 2001. It exists by force of the Act and continues despite changes in membership.
Voting member is defined in section 1A by three cumulative conditions: subscribing to the objects, paying such subscriptions and levies as the board requires from time to time, and being admitted by the board. This gives the board control over who can vote on constitutional amendments and other matters reserved to voting members under the articles. The board can set the price of admission and ongoing fees, effectively determining the franchise.
Associate member is a person who is a non-voting member of a centre or branch, or who is admitted as an associate by the board. Associate members have no voting rights, no role in constitutional amendments, and no direct say in property sales or board composition under the Act.
Board of directors is the governing body that “shall govern, manage, and dispose of” the corporation and its property (section 5). The board is subject to the articles of constitution but has broad discretion. It controls admission of members, property dealings, investment decisions, and constitutional amendment proposals. The Act does not specify the board’s size, election method, or term; those matters are left to the articles.
Objects in section 3A define the corporation’s purposes. They are wide and include promoting Christian beliefs, the Paris Basis (a 1855 evangelical statement), the well-being of young people (male and female), remaining a member of the National Council of YMCAs, providing educational and recreational facilities, training youth leaders, assisting disadvantaged young people, community advocacy, forming branches and centres, and disseminating information. Objects are legally relevant because the corporation’s powers under section 7 are exercisable only “for the purposes for which it is constituted”. Activities outside these objects could be ultra vires.
Real property sale procedure under section 8 requires two board meetings with a minimum seven day notice for the second meeting, and a two-thirds majority of those present when the motion is put. The Act does not require membership approval for land sales, unlike constitutional amendments which require voting member approval under section 4(4). A sealed resolution is conclusive evidence of compliance, protecting purchasers but not requiring them to verify internal procedures.
Constitutional amendment procedure under section 4 is more rigorous. It requires a written submission at an ordinary meeting without discussion, then discussion at a later meeting with fourteen days notice, board approval by two-thirds, a special meeting of voting members, and approval by two-thirds of voting members present. This creates multiple veto points and a delay of at least two board cycles plus a member meeting.
Power of investment in section 9 is restricted to a defined set of asset classes: government securities, municipal debentures, freehold mortgages, and bank deposits. This limits yield and diversification. The board must form an opinion that the funds are not required for current expenses before investing.
Who it affects
The Act primarily affects the Young Men’s Christian Association of Sydney itself, its board of directors, its members (voting and associate), its employees, and persons formerly holding property in trust for the unincorporated association. Trustees are discharged from liability by section 6(2), which directly affects any person who held title for the association before incorporation. The Act also affects anyone dealing with the corporation, including purchasers of real property, lenders, donors, contractors, and persons on whom legal process is served.
Voting members are affected because they have the right to vote on constitutional amendments (section 4(4)) and potentially on other matters under the articles. Their ability to become and remain voting members depends on the board’s discretion to admit and set subscription levels. Associate members have no voting rights under the Act, so they are affected only as participants in branches or centres.
The board of directors is most directly affected. It must follow the property sale procedure in section 8, the constitutional amendment procedure in section 4, and the investment constraints in section 9. The board also bears responsibility for ensuring the corporation’s activities align with the objects in section 3A. Board members face potential personal liability if they exceed their powers, because the Act does not provide indemnity or limit director liability.
Employees are affected because the corporation can hire them under section 7(2)(j). However, the Act does not regulate employment terms, leaving that to general law.
Persons purchasing real property from the YMCA are affected by section 8(d) and (e). They can rely on a sealed resolution as conclusive evidence that the sale was properly approved, and they are not required to see that the purchase money is properly applied. This protects a purchaser’s title but also protects the board from purchaser scrutiny of whether the sale benefits the YMCA.
Donors and testators are affected because the investment power in section 9 restricts how donated funds can be invested. If a donor intends the YMCA to invest in growth assets, the Act may prevent that. The board must invest only in the listed categories unless the funds are required for current expenses.
Creditors and lenders are affected because section 7(2)(b) allows the corporation to borrow or raise money. A lender may need to verify that the borrowing is for the corporation’s purposes and within board authority. The Act does not create any priority or security for unsecured creditors.
People served with legal documents are affected by section 12, which provides that service on the executive director or acting executive director is deemed service on the corporation. This affects plaintiffs and defendants in litigation, as they must identify the current executive director.
Key duties and rights
Duty of the board to follow property sale procedure. Section 8 imposes a mandatory process for any sale of real property. The board must first submit the proposed sale at an ordinary meeting. Then it must give at least seven days notice of the next ordinary meeting and submit the proposal again. The sale must be approved by not less than two-thirds of board members present when the motion is put, excluding the chairman. A sealed copy of the resolution is then both a condition for the sale and conclusive evidence for purchasers. Failure to follow this procedure could make the sale void as against the YMCA.
Right of the board to invest surplus funds. Section 9 gives the board discretion to invest funds not required for current expenses, but only in prescribed categories. The board has no duty to invest; the provision is permissive. However, if it does invest, it must stay within the list. This limits the board’s duty of care under general law, because the Act constrains the investment universe.
Right of voting members to approve constitutional amendments. Section 4(4) gives voting members the right to vote on proposed additions or alterations to the articles. No change can take effect without a two-thirds majority of voting members present at a special meeting. This creates a property-like right in the constitution that cannot be unilaterally altered by the board.
Duty of voting members to subscribe to objects and pay levies. Section 1A defines voting membership by three criteria: subscribing to the objects, paying subscriptions and levies set by the board, and being admitted by the board. The board can unilaterally change the subscription amount or impose levies. If a member fails to pay, they risk losing voting membership status.
Right of the board to admit members. The board controls admission of both voting and associate members under section 1A. It can set criteria and deny admission without statutory limitation. This gives the board significant control over who participates in governance.
Right of the corporation to enter contracts and employ staff. Section 7(2)(j) and (l) empower the corporation to hire and contract. These are standard powers but expressly granted, which may be useful to confirm the capacity of a statutory corporation not formed under general corporations law.
Duty of the executive director to hold the common seal. Section 11 provides that the seal is in the custody of the executive director. The executive director must ensure the seal is affixed only with the signatures of three board members. The executive director may be liable for unauthorised use.
Right of persons served to treat executive director as the corporation. Section 12 deems service on the executive director as service on the body corporate. This imposes a duty on the executive director to accept service and on the corporation to respond through that officer.
Right of purchasers of real property to rely on sealed resolution. Section 8(d) provides that a sealed copy of the board’s resolution directing the sale is conclusive evidence that the resolution was duly passed in compliance with the Act and articles. Purchasers need not investigate the internal meeting process or the board’s compliance with notice requirements.
Penalties and enforcement
The Act creates no criminal penalties, fines, or civil penalties for contraventions. It does not authorise any regulator to enforce its provisions. Enforcement therefore depends on general law remedies, including: injunction to restrain ultra vires acts; an action for breach of fiduciary duty against directors who misuse property; an application for a declaration that a sale of real property is void if the section 8 procedure was not followed; or a derivative claim by voting members if directors exceed their powers.
Section 4(5) provides that any article of constitution opposed to the Act is “absolutely null and void”. This can be invoked by any person with standing, possibly voting members or the board itself, to challenge article provisions that conflict with the Act. However, the Act does not specify a mechanism for such a challenge; it would require court proceedings.
For property sales, the conclusive evidence provision in section 8(d) protects purchasers but does not immunise the board from internal challenge. If a resolution was passed in breach of the notice or quorum requirements, a voting member might seek an injunction before the sale is completed. After completion, the purchaser’s title is protected (section 8(e) also shields the purchaser from seeing to the application of money), so the only remedy would be against the directors personally for breach of duty.
Investment beyond the permitted classes in section 9 could expose directors to claims for breach of trust or ultra vires acts. The Act does not authorise wider investment even if the board thinks it is beneficial. Directors who invest in unauthorised assets could be personally liable to restore losses.
The absence of statutory penalties does not mean the Act is toothless. Common law and equitable remedies apply to directors and officers. For example, if the board sells real property without following section 8, the sale is likely voidable at the instance of the corporation. The directors could be sued for breach of statutory duty or for converting corporate property.
Enforcement may also arise through the interaction with other laws. For instance, if the YMCA is registered as a charity with the Australian Charities and Not-for-profits Commission, the ACNC may investigate governance failures. However, the ACNC does not have power to enforce this Act directly; it would consider whether governance failures affect charitable status.
The Act is also enforceable through the articles of constitution, which may themselves contain dispute resolution mechanisms or provisions for removal of directors. The Act does not regulate such internal processes, leaving them to the articles.
How it interacts with other laws
This Act is a private Act that creates a statutory corporation. It does not repeal or displace general laws unless there is an inconsistency. The YMCA of Sydney is not a company under the Corporations Act 2001 (Cth) and is not subject to its governance requirements, including director duties, member rights, and financial reporting obligations in that Act. However, the corporation remains subject to other Commonwealth and State laws, including: the Australian Charities and Not-for-profits Commission Act 2012 (Cth) if the YMCA is registered as a charity; workplace laws such as the Fair Work Act 2009 (Cth); anti-discrimination legislation; occupational health and safety laws; and property law governing transactions.
The objects in section 3A are religious and charitable in character. This likely qualifies the YMCA for charitable tax concessions under the Income Tax Assessment Act 1997 (Cth) and for endorsement as a deductible gift recipient. The investment restrictions in section 9 may affect tax planning, as the narrow investment range may limit returns and thus affect the accumulation of funds for charitable purposes. The Act does not address whether the corporation can accept donations for specific purposes or hold funds on trust; section 7(2)(k) allows it to undertake any trust, so it can act as trustee, but it must comply with trustee duties under State trustee legislation.
The transfer of property in section 6 operates as a statutory vesting. This overrides the general law requirement for a deed of transfer. No stamp duty liability is discussed in the Act; under general law, statutory vestings may be exempt from duty or subject to specific provisions in the Duties Act 1997 (NSW).
The procedures for constitutional amendment and property sales do not override the general law on directors’ duties. Directors still owe fiduciary duties and a duty of care at common law and under any applicable State legislation. The Act’s procedures are additional requirements, not substitutes for proper decision-making.
Service of process provisions in section 12 are consistent with rules of court. Service on the executive director is good service. This does not prevent alternative methods of service permitted by court rules.
The Act’s savings and transitional provisions in section 13 continue the effect of the repealed 1976 amendment Act. This interacts with the Interpretation Act 1987 (NSW) section 30A, which applies to transferred provisions. The practical effect is that any transitional arrangements in the 1976 Act remain operative, even though that Act is repealed.
The Act does not override the Charitable Trusts Act 1993 (NSW). If property is held on trust for the YMCA, the Supreme Court’s cy-près jurisdiction may apply if the objects become impossible to fulfill. The Act does not create a statutory modification of charitable trust law.
Amendment history
The Act was originally enacted in 1906 as the Young Men’s Christian Association of Sydney Incorporation Act 1906. It incorporated the unincorporated association then known as the New South Wales Young Men’s Christian Association.
The first substantial amendment occurred in 1976 via the Young Men’s Christian Association of Sydney Incorporation (Amendment) Act 1976 (Act No 60). That amendment inserted the definitions in section 1A, including the definitions of associate member, voting member, Association, and young people. It inserted the objects clause in section 3A, which had not existed in the original Act. The original Act had no statement of objects, so the 1976 amendment provided a modern statement of purposes. The amendment substituted section 7 with an expanded list of powers. It amended sections 2, 5, 8, 11, and 12, though the precise changes are not detailed in the current text. It also repealed the original Second Schedule. The amendment Act was itself later repealed, but section 13 (inserted in 2007) saved sections 3 and 4 of that 1976 Act and transferred their effect into this Act.
The 2007 amendment was made by the Statute Law (Miscellaneous Provisions) Act 2007 (No 82), Schedule 4.30. That amendment inserted section 13, which deals with the continued effect of savings and transitional provisions from the repealed 1976 Act. Section 13(1) preserves the operation of sections 3 and 4 of the 1976 Act despite its repeal. Section 13(2) declares those provisions to be transferred provisions to which section 30A of the Interpretation Act 1987 applies. This is a technical provision ensuring that any transitional rules from 1976 continue to regulate matters such as the adoption of the 1976 articles as the constitution of the corporation.
The Act has not been amended since 2007. The only schedules remaining are Schedule 1 (a parcel of land at Pitt and Bathurst Streets, Sydney) and Schedule 2 was repealed in 1976.
The amendment history shows that the core framework of the Act remained unchanged from 1906 until 1976. The 1976 amendments modernised the governance structure by adding definitions, objects, and broader powers. The 2007 amendment was a technical clean-up, not a substantive reform.
Litigation history
The Act does not reference any specific litigation, and no cases are reported in the source text. However, certain provisions are clearly designed to manage litigation or evidentiary issues that the drafters anticipated. Section 8(d), for example, makes a sealed resolution “conclusive evidence in favour of any person claiming by, through, or under such sale that such resolution has been duly passed in compliance with the provisions of this Act, and of the articles of the constitution”. This suggests that without such a provision, purchasers might have been required to verify internal compliance, and disputes over the validity of sales could have arisen. The conclusive evidence clause is a pragmatic measure to protect the security of land titles.
Similarly, section 10 provides that a certified printed copy of the articles of constitution, sealed and certified by the president or a vice-president, “shall be received in all courts as conclusive evidence that the said articles are the articles of the constitution of the said association” as at the certificate date and that they were duly made under the Act. This provision recognises that the articles may need to be proved in court, and simplifies proof.
Section 3 allows the body corporate to “sue and be sued”. Section 12 specifies that service on the executive director is deemed service on the corporation, removing any issue about who should be served.
The Act does not create any cause of action itself. There are no statutory penalties, so private litigation would rely on common law or equitable grounds. Potential litigation could include: a challenge by voting members to a board decision that allegedly violates the objects, the articles, or the Act; a dispute over the validity of a member’s admission or expulsion; a suit concerning the application of donated funds; or an action by a trustee discharged under section 6(2) seeking to avoid liability.
Because the Act is a private Act and the YMCA is a large, well-known charity, there may have been unreported or unindexed disputes. However, no cases are mentioned in the legislative text. It is possible that the provisions on property sales have been tested in the Supreme Court of New South Wales, but the source does not confirm this. Without judicial interpretation, the meaning of terms like “subscribes to the objects” (section 1A) or “for the purposes for which it is constituted” (section 7(1)) remains untested.
Gotchas
No membership vote required for land sales. Section 8 requires only board approval for selling real property, with two meetings and a two-thirds majority of directors. Voting members have no right to vote on land sales, unlike constitutional amendments which require a vote under section 4(4). This can trap members who assume they have a say in major asset disposals. The board could sell the land described in Schedule 1 without any member referendum.
Board controls membership admission and subscription levels. Under section 1A, the board admits voting members and sets the subscriptions and levies they must pay. A board could set subscription levels high enough to limit membership to a select group, or change them annually to control who can vote. There is no statutory criterion for admission beyond the board’s discretion.
Investment powers are restrictive and may be outdated. Section 9 permits investment only in government securities, municipal debentures, freehold mortgages, and bank deposits. The YMCA cannot invest in shares, bonds issued by private companies, managed funds, or real estate for investment purposes (as opposed to operational property). This limits returns and may conflict with modern portfolio management. The board has no power to invest in alternative assets even if prudent.
Objects clause is very broad, creating mission creep risk. Section 3A lists fourteen objects covering religious, educational, social, and advocacy activities. The breadth means almost any activity related to young people could be within purpose. However, the first object is “to promote and further Christian beliefs and Christian living”, which may restrain activities that conflict with that religious objective. The Paris Basis is quoted as an object, which commits the YMCA to an evangelical Christian statement. This could create tension if the YMCA seeks government funding that requires secular service delivery.
Common seal requires three director signatures. Section 11 mandates that fixing the seal is not complete without the signatures of three board members. This is a higher threshold than many incorporated entities. If the seal is affixed without three signatures, the document may be invalid. The seal must be in the custody of the executive director, who is a single point of failure.
No automatic charitable status. While the objects are charitable in nature, the Act does not declare the YMCA to be a charity. Charitable status depends on separate registration with the ACNC and the Australian Taxation Office. The Act does not mention the Charities Act 2013 or the ACNC Act. The YMCA must comply with separate regulatory requirements, including the Governance Standards if it is a registered charity.
Articles of constitution are not set out in the Act. The Act incorporates articles by reference (section 4(1)). A person reading the Act alone does not know the detailed governance rules, such as the composition of the board, election procedures, or meeting quora. The articles can be amended by the procedure in section 4, but the current content is unknown without obtaining a copy from the YMCA.
Service on executive director binds the corporation but may cause delay. Section 12 provides that service on the executive director is deemed service on the body corporate. If the executive director is unavailable or slow to inform the board, the corporation may miss response deadlines. The Act does not require the executive director to forward documents promptly.
Section 8(d) and (e) protect purchasers but not the YMCA from board misconduct. A board that sells land without proper notice can still complete the sale because the sealed resolution is conclusive evidence. The purchaser is not required to verify that the board followed procedure. The YMCA’s only recourse is against the directors, not to recover the land from a third party.
How to comply
For a sale of real property. The board must first discuss the proposed sale at an ordinary meeting. The proposal must be submitted in writing, but no vote is taken at this stage. At the next ordinary meeting, the board must give at least seven days notice to directors that the proposal will be considered. The proposal is then open for discussion and amendment. A motion to approve the sale must pass with at least two-thirds of the directors present when the motion is put, excluding the chairman. The board must then record the resolution and have it sealed with the common seal. The sealed resolution should state that the sale is approved and that the board has complied with the Act and articles. The executive director must ensure the seal is affixed with signatures of three directors. The board then executes the conveyance or transfer. The purchaser is entitled to rely on the sealed resolution as conclusive evidence of compliance, so the board need not provide further proof.
For amending the articles of constitution. The board must submit any proposed amendment in writing at an ordinary meeting without discussion. At the next ordinary meeting, with at least fourteen days notice to directors, the proposal is open for discussion and amendment. If approved by two-thirds of directors present (excluding the chairman), the proposal is submitted to a special meeting of voting members. The special meeting must be properly convened under the articles. The amendment must be approved by two-thirds of voting members present (excluding the chairman). The amendment is then embodied in the articles. The board should ensure the articles are reprinted and certified under section 10.
For investments. Before investing any funds, the board must form an opinion that the funds are not required to defray current expenses. This opinion should be recorded in minutes. The board may only invest in: Commonwealth or state government securities, municipal debentures, freehold mortgages, or bank deposits for fixed periods or otherwise. No equities, corporate bonds, managed investment schemes, or real property for investment are permitted. The board should review the investment portfolio annually to ensure compliance.
For use of the common seal. The executive director must keep the seal in secure custody. Whenever the seal is affixed to a document, three directors must sign in the presence of the executive director or other authorised officer. The signing directors should verify that the document is authorised by the board. For the appointment of an attorney, solicitor, or proctor for legal proceedings, the seal is not required (section 11 proviso).
For service of documents. The corporation must maintain current contact details for the executive director. Any legal proceedings must be served on that officer. The executive director should have a system to immediately notify the board or legal counsel of any service.
For maintaining membership records. The board must record who are voting members and associate members. Voting members must have subscribed to the objects and paid current subscriptions and levies. The board should periodically review membership lists and remove those who have not paid or whose admission has lapsed.
For constitutional consistency. The board should periodically review the articles to ensure no article is opposed to the Act, because such articles are void (section 4(5)). If any inconsistency is found, the board should commence the amendment procedure to remove it.
For compliance with other laws. The YMCA should also comply with: ACNC Governance Standards if a registered charity; fundraising laws if soliciting donations; workplace laws regarding employees; property law for all transactions not covered by section 8 (e.g., leases); and tax law for charity endorsements. The Act does not exempt the corporation from these.
Section 4Articles of constitution of the association, and amendment thereof
(a) to promote and further Christian beliefs and Christian living,
(b) to promote and further the spirit of the declaration adopted in Paris in 1855, known as the “Paris Basis”, which is as follows:
The Young Men’s Christian Associations seek to unite those young men who, regarding Jesus Christ as their God and Saviour according to the Holy Scriptures, desire to be His disciples in their faith and in their life, and to associate their efforts for the extension of His Kingdom amongst young men.
(c) to promote the spiritual, mental, moral, social, physical and material well-being of young people generally and to assist them to become Christians in faith and practice and active members of the Christian Church,
(d) to remain a member of The National Council of Young Men’s Christian Associations of Australia,
(e) to promote the interests of the Young Men’s Christian Association movement,
(f) to procure and provide facilities, including effective trained leadership, enabling young people to become associated in groups,
(g) to procure and provide educational, cultural and recreational facilities for young people,
(h) to promote and encourage the training of leaders of youth groups and other social workers interested in the welfare of young people,
(i) to provide facilities enabling young people in poor circumstances to participate in any activity or youth group,
(j) to promote an awareness in the community of:
(i) the needs of young people as members of society and of the place and value of group programmes in the satisfaction of those needs, and
(ii) the needs of society in respect of the effective participation of young people,
(k) to promote and form branches or youth centres in metropolitan, urban or suburban areas and to exercise supervision over those branches or centres,
(l) to act as an advisory body and to assist any organisation on matters relating to young people,
(m) to make representations for the advancement and betterment of young people, and
(n) to acquire and disseminate information relating to any facet of the behaviour of young people.
s 3A: Ins 1976 No 60, Sch 1 (3).
4 Articles of constitution of the association, and amendment thereof
4 Articles of constitution of the association, and amendment thereof
4 Articles of constitution of the association, and amendment thereof
(1) The articles of the constitution of the said body corporate shall, subject to the Young Men’s Christian Association of Sydney Incorporation (Amendment) Act 1976, and any addition or alteration made in accordance with this section, be the articles of the Association in force immediately before the date of assent to the Young Men’s Christian Association of Sydney Incorporation (Amendment) Act 1976.
(2) Any proposed addition to or alteration of the said articles shall be submitted in writing at an ordinary meeting of the board of directors, and received without discussion.
(3) At the next ordinary meeting of the board of directors, of which not less than fourteen days notice shall have been given, such proposed addition to or alteration of the said articles shall be open for discussion or amendment, and the proposed addition or alteration, or any amendment thereof, if approved by not less than two-thirds of those present when the motion is put (excluding the chairman of the meeting for the time being), shall be submitted to a special meeting of the voting members for confirmation.
(4) The proposed addition to or alteration of the said articles shall be submitted to a special meeting of the voting members, and if approved by not less than two-thirds of such members present when the motion is put (excluding the chairman for the time being), shall be embodied in the said articles.
(5) Any article of the constitution opposed to the provisions of this Act shall be absolutely null and void.
(6) (Repealed)
s 4: Am 1976 No 60, Sch 1 (4).
5 The association and its property to be governed by board of directors
5 The association and its property to be governed by board of directors
5 The association and its property to be governed by board of directors
The body corporate and its property shall be governed, managed, and disposed of by the board of directors for the time being, subject to the articles of the constitution hereinbefore referred to or made under the provisions of this Act.
s 5: Am 1976 No 60, Sch 1 (5).
6 Property of the New South Wales Young Men’s Christian Association vested in the body corporate
6 Property of the New South Wales Young Men’s Christian Association vested in the body corporate
6 Property of the New South Wales Young Men’s Christian Association vested in the body corporate
(1) All real and personal property which is now or may hereafter at any time be vested in or held by any person in trust for or on behalf of the association known as the Young Men’s Christian Association of Sydney (including the lands described in the Schedule hereto) is and shall be hereby transferred to and vested in the said body corporate; and all other persons are hereby divested of any such property of which they are seized or possessed, and all rights accrued or accruing to any person on behalf of such association are hereby vested in and may be enforced by, and all liabilities of the said association, or of any person on behalf of the said association, may be enforced against the said body corporate.
(2) The trustees in whom is vested any such real or personal property are hereby discharged from all liabilities which they may have incurred by reason of the transfer of the management or control of such real or personal property or by reason of any acts done by them in connection with such transfer.
7 Additional powers of the body corporate
7 Additional powers of the body corporate
7 Additional powers of the body corporate
(1) The body corporate may, for the purposes for which it is constituted, purchase, exchange, take on lease, hold, dispose of and otherwise deal with any real or personal property and may do and suffer all other things that bodies corporate generally may, by law, do and suffer and that are necessary for or incidental to the purposes for which it is constituted.
(2) Without limiting the generality of subsection (1), the body corporate may, for the purposes for which it is constituted, do any one or more of the following:
(a) affiliate with any corporate or unincorporate body,
(b) borrow or raise money,
(c) secure the repayment of any money or of any debt or liability or the performance of any contract or agreement,
(d) raise funds by means of public appeal or otherwise,
(e) construct, maintain, alter or rebuild any house, building or work,
(f) carry out works on any of its property,
(g) provide accommodation on any of its property,
(h) permit the occupation or use of any of its property by any person upon such terms and conditions as it may from time to time determine either generally or in a particular case,
(i) purchase, sell, supply or otherwise deal in any provisions or goods,
(j) appoint and employ officers and employees,
(k) undertake and execute any trust, and
(l) enter into and execute any contract or agreement.
s 7: Subst 1976 No 60, Sch 1 (6).
8 Mode of dealing with property
8 Mode of dealing with property
8 Mode of dealing with property
The board of directors shall deal with or dispose of any real or personal property vested in the said body corporate, in such manner as they think fit, but subject, in the case of a sale of real property, to the following conditions, namely:
(a) Any proposed sale of such real property shall be submitted in the first instance to an ordinary meeting of the board of directors.
(b) At the next ordinary meeting of the board of directors, of which not less than seven days notice shall have been given, such proposed sale of such real property shall be submitted to the meeting, and if approved of by not less than two-thirds of those present when the motion is put, may be carried into effect by the board of directors.
(c) (Repealed)
(d) A copy of the resolution of the board of directors, directing such sale of such real property if sealed with the seal of the said body corporate, shall be conclusive evidence in favour of any person claiming by, through, or under such sale that such resolution has been duly passed in compliance with the provisions of this Act, and of the articles of the constitution.
(e) No purchaser, or any person claiming such real property, or any portion thereof, or any interest therein, in pursuance of such resolution shall be bound to see to the application of any moneys paid by him in respect of such sale of such real property.
s 8: Am 1976 No 60, Sch 1 (7).
9 Power to invest funds
9 Power to invest funds
9 Power to invest funds
It shall be lawful for the board of directors, from time to time, to invest any funds of the said body corporate which are not in the opinion of the said board required to defray the current expenses of the body corporate, and any moneys given or bequeathed to or arising from any donation of real or personal property to the body corporate, at the discretion of such board, in any Government funds or debentures of the Commonwealth of Australia, or of any state of the Commonwealth, or in any debentures or debenture stock of any municipal corporation in the said states, or by way of purchase of, or mortgage upon any freehold estate there, as well as in bank deposits for fixed periods or otherwise.
10 Certified copy of articles of the constitution to be evidence
10 Certified copy of articles of the constitution to be evidence
10 Certified copy of articles of the constitution to be evidence
A printed copy of the articles of the constitution, sealed with the seal of the said body corporate, and purporting to be certified by the president or one of the vice-presidents for the time being of the said body corporate as being correct, shall be received in all courts as conclusive evidence that the said articles are the articles of the constitution of the said association on the date on which such certificate purports to be made, and that such articles have been duly made under the provisions of this Act.
11 Common seal
11 Common seal
11 Common seal
It shall be lawful for the board of directors to design at any time and to change or alter the common seal of the said body corporate; such seal shall be in the custody of the executive director. The fixing of the said common seal to any document shall not be complete without the signature of three members of the board of directors: Provided that it shall not be necessary to require such seal to be affixed as evidence of the appointment by the said body corporate of an attorney, solicitor, or proctor in or for the prosecution or defence of any action, suit, or other proceeding.
s 11: Am 1976 No 60, Sch 1 (8).
12 Service upon the body corporate
12 Service upon the body corporate
12 Service upon the body corporate
Notice to or service upon the executive director or acting executive director of the said body corporate in his official capacity shall be deemed to be a notice to or service upon the said body corporate.
s 12: Am 1976 No 60, Sch 1 (9).
13 Repeal of Act does not affect operation of savings and transitional provisions
13 Repeal of Act does not affect operation of savings and transitional provisions
13 Repeal of Act does not affect operation of savings and transitional provisions
(1) Despite the repeal of the Young Men’s Christian Association of Sydney Incorporation (Amendment) Act 1976, sections 3 and 4 of that Act continue to have effect and are taken to have been transferred to this Act.
(2) Sections 3 and 4 of the Young Men’s Christian Association of Sydney Incorporation (Amendment) Act 1976 are transferred provisions to which section 30A of the Interpretation Act 1987 applies.
s 13: Ins 2007 No 82, Sch 4.30.
Schedule 1
First Schedule
ALL that piece or parcel of land situated at Sydney, parish of Alexandria, county of Cumberland, and State of New South Wales, and being the balance of lot number one, section eighteen, since the alignment of Pitt and Bathurst streets: Commencing at the junction of western side of Pitt-street with northern side of Bathurst-street; thence bounded on the north-east by Pitt-street, bearing north six degrees thirteen minutes west distance sixty feet and half an inch; thence on the north by number two allotment, bearing south eighty-one degrees fifty minutes west distance seventy-six feet four and a half inches, and south eighty-three degrees west distance sixty-one feet five and a half inches; thence on south-west by a line bearing south two degrees forty-nine minutes east distance forty-eight feet nine and a half inches to Bathurst-street; thence on the south-east by that street, bearing north eighty-seven degrees east distance one hundred and forty feet eleven and a half inches, to point of commencement,—be the said several dimensions a little more or less.
Schedule 2
Second Schedule (Repealed)
Second Sch: Rep 1976 No 60, Sch 1 (10).
Young Men’s Christian Association of Sydney Incorporation Act 1906 (New South Wales) | Zoe