21 resolutions in 21 days – Episode 5
Why we are specifying a limit to your liability
Limited liability isn’t paddling as fast and hard as you can from the sound of banjos. It is more like a prenup for your professional association membership. It protects your personal assets from the organisation’s financial decisions, no matter how questionable those decisions may be.
Under Australian law, companies limited by guarantee (like AMT) must specify what members would contribute if the Association winds up. Think of it as answering the question: “If AMT somehow racks up massive debts and has to close, how much could members be asked to chip in?”
The answer? $1.00.
The $1 amount is deliberately minimal: it satisfies legal requirements while ensuring members aren’t exposed to significant financial risk.
No matter what financial catastrophe might theoretically befall AMT – whether we accidentally purchase a spacesuit as personal protective equipment1 or somehow acquire a timeshare in the Bahamas – your maximum liability is one dollar.
It’s a bit of a no-brainer.
Any questions?
AMT is hosting two discussion sessions via Zoom for members who have any questions about the proposed Constitutional changes.
Thursday 18 September @ 7.30pm Register here
Tuesday 30 September @ 12.30pm Register here
This is Episode 5 in our blockbuster blog bonanza “21 Resolutions in 21 Days”, exploring the cases for constitutional change that will be considered at the upcoming Special General Meeting on October 19. Each change is designed to strengthen AMT’s governance and better serve members.
Tomorrow: Plugging the holes in our governance Swiss cheese.
