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Back to "Community & Associations Newsletter - Autumn 2020"

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Compulsory Whistleblower Policy

In our last Community & Associations Newsletter (October 2019 edition) we brought attention to the requirement that all public companies, including companies limited by guarantee, must have a whistleblower policy in place by 1 January 2020.

An exemption to the law has been granted to small not-for-profit organisations or charities with an annual revenue of $1 million or less even though they operate using a company limited by guarantee.

The argument is that that the disadvantage to such small organisations would largely outweigh the advantages of adopting whistleblower requirements in the first place.

However, small NFPs should continue to bear in mind that, even though an exempt company limited by guarantee may not need a whistleblower policy, the Corporations Act 2001 still extends protection to a whistleblower who makes a disclosure irrespective of the size of the company to which it relates.

We suggest best practice is that all charities adopt a policy. We can assist with drafting a policy and invite you to contact Josephine Heesh for that purpose.

Josephine Heesh, Partner

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