Constitution of Urabba Parks/Section 85

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Chapter 4 >>Part 1 >>Division 1 >>Subdivision B >>Section 85

Gift Revenue Fund[edit | edit source]

(1)  There shall be a part of the Trust Fund known as the Gift Revenue Fund of which shall consist of gift funds held beneficially by Urabba Parks.

(2)  Except upon the winding-up of the fund, Urabba Parks shall not voluntarily apply any part of a public fund unless such application is approved a body:

(a)  that has at least 3 members; and
(b)  the majority of members required to vote in favour on for any resolution of the body must be qualified to occupy a visitatorial place (category V) under section 102.

(3)  Upon winding-up of a public fund, Urabba Parks may make a charity distribution on the amounts remaining in any public fund to ordinary members.

Note: Special rules apply to charity distributions from public funds: see subsection 92(1).

Relevant notes from the Explanatory Memorandum[edit | edit source]

218. Subsection (1) provides for a Gift Revenue Fund which is a part of the Trust Fund consisting of amounts held as gift funds. This provision is to ensure that gift funds (including public funds) are kept separate from the other funds held in the Corporate Treasury.

219. Subsection (2) provides that any part of a public fund, except in the case of winding-up of the fund, may only be voluntarily applied by Urabba Parks with the approval of a body consisting of at least 3 members who are also qualified to occupy a visitatorial place (category V) under section 102. This provision ensures that persons with a responsibility to the Australian community participate in the management of the public fund, which is essential to the continuing endorsement of the public fund to receive tax deductible donations.

220. Subsection (3) provides Urabba Parks may make a charity distribution to ordinary members of the public fund upon winding up of the fund. There is also a note confirming the application of subsection 92(1) in relation to the charity distribution; under that provision the restrictions that apply to public funds shall apply to the charity distribution from the fund (see note 237). Therefore, while ordinary members will be able to determine what charities will receive the proceeds of the fund on winding-up, the members will only be able to nominate Deductible Gift Recipients within the meaning of the Income Tax Assessment Act 1997.