Required rules
There are 4 rules that every corporation must have in its rule book.
A corporation’s rule book must state:
- the name of the corporation
- the corporation’s objectives – its purpose or what the corporation wants to achieve
- who is eligible to be a member
- the process the corporation will use to resolve internal disputes.
See our model rule books for suggestions about what to include and how to word these rules.
Objectives
Your rule book must set out what the corporation’s objective/s are. The rule about objectives sets out your corporation’s purpose and its range of activities.
The objectives define the scope within which a corporation can operate. A corporation shouldn’t engage in activities that are outside its objectives, especially if it is a requirement for other registrations such as being a charity.
Members
Who can become a member of your corporation must be set out in the rule book.
The CATSI Act says members must be at least 15 years old. This is a changeable rule and corporations can make different rules about who can be a member.
Some of the things to consider are:
- will the corporation only have Aboriginal or Torres Strait Islander members?
- how do you become a member of a corporation?
- how do you stop being a member?
Managing internal disputes
Your rule book must set out a step-by-step procedure to help resolve any disputes between members and directors.
Read more about managing internal disputes.
Required rules for specific types of corporations
If you want to register the corporation as a charity or a registered native title body corporate, there are specific things you’ll need to include in your rule book.