New Legal and Regulatory Framework for the NGO sector in Mauritius DRAFT LEGISLATION 2008

1. New Legal and Regulatory Framework for the NGO sector in MauritiusDRAFT LEGISLATION(2008) 1

2. Amendments to the existing legislation Registration of Associations Act [Act 35 of 1978, as amended by Act 43/01 (P3/02), Act 37/03] Registration of Associations (Amendment) Bill 2007 Registration of Associations Regulations 1979 [GN 50/1979, as amended by GN 88/1986 and 16/2004] Registration of Associations (Amendment) Regulations 2007 Enactment of new provisions Income Tax (Charitable Institution) Regulations 2007 2

3. Objects of the Amendments to Registration of Associations Act & to the Regulations (1) To affirm the right of informal (non-registered) associations to exist and carry out activities, in accordance with human rights guaranteed by the Constitution and international law [Clause 4 of Bill, amending section 3 of the Act by the addition of a new subsection(3)] [Clause 6 of Bill amending section 5 of Act] [Clause 11 of Bill, amending section 10 of Act dealing with ‘Consequences of refusal to register’] 3

4. Objects of the Amendments to Registration of Associations Act & to the Regulations (2) Improve the registration process , in compliance with best international regulatory practices [Clause 7 of Bill amending section 6 of Act to ensure within 30 days applicant association knows of outcome of application for registration] [Clause 8 of Bill amending section 7(1) of Act to clarify the grounds for which registration] 4

5. Objects of the Amendments to Registration of Associations Act & to the Regulations (2) Ensure the register of associations is genuinely and speedily accessible [Clause 5 of Bill, amending section 4 of Act to ensure speedier access to the registry] 5

6. Clarify the rights and duties incurred by association prior to incorporation [Clause 9 of Bill: Insertion of new section 8A ‘Pre-Registration Arrangements’ Objects of the Amendments to Registration of Associations Act & to the Regulations (3) 6

7. Objects of the Amendments to Registration of Associations Act & to the Regulations (4) Ease the operation of associations [Amendment of Regulation 3 to make the distinction between small and large associations more meaningful: assets worth more than Rs5 million or annual revenue exceeding Rs 500,000] [Clause 9 of Bill, amending section 9(3) of Act to ease disposal of property] [Clause 20 repealing provisions in section 19 of Act concerning expenditure limits] [Amendment of Regulation 7, to dispense with the need for payment over Rs 100 to be made by cheque] 7

8. Objects of the Amendments to Registration of Associations Act & to the Regulations (4) Ease the operation of associations (Contd) [Clause 14 of Bill amending section 13 of Act, dealing with ‘Amendments of Rules’ dispensing with need for a special resolution but ensuring Registrar is notified of any material change (Association to lay down in its Rules requirements for amendment thereof)] [Clause 21 of Bill inserting new section 19A affirming right of associations to engage in economic activities] Improve the process for the transformation of associations [Clause 18 enacting new section 17A dealing with Splitting up of an association into two or more associations] 8

9. Objects of the Amendments to Registration of Associations Act & to the Regulations (4) Improve the process for the winding up of associations [Clause 16 of Bill amending section 15(1)(e) of Act by clarifying when an association shall be regarded as having ceased to function] [Clause 17 of Bill amending section 16 of Act, with a view to ensuring within 30 days an association can be wound up] [Clause 19 of Bill amending section 18(4) of Act to ensure remaining assets are used for same or similar purposes, ideally through distribution of the assets to another registered association] 9

10. Objects of the Amendments to Registration of Associations Act & to the Regulations (5) Improve the legal requirements for internal governance, in accordance with best international regulatory practices, by clarifying the duties and liabilities of officers and expressly prohibiting the distribution of profits and benefits, and self-dealing [Clause 20 of Bill repealing and replacing section 19 to enact provisions dealing with ‘Prohibition against private benefits in the application of funds’] 10

11. Objects of the Amendments to Registration of Associations Act & to the Regulations (5) Duties of officers and committee members clarified [Clause 22 of Bill inserting new section 25A: officers and committee members to execute responsibilities with care and diligence, to be loyal to the association and act in its best interests, not to disclose information obtained in confidentiality, to avoid and disclose potential conflicts of interest] [Officers and committee members to be liable for breach of their duties; Redress available to registered association or an aggrieved person] 11

12. Objects of the Amendments to Registration of Associations Act & to the Regulations (6) Streamline the procedures for reporting and auditing, inspection and monitoring [By ensuring the more stringent requirements laid down in sections 22 and 23 (need for a qualified accountant or firm of accountants as auditor) do in effect apply to those who have the means to so afford] {Amendment to Regulation 3} [Clause 23 amending section 31 of Act to ensure inspections are conducted after advance notice and during normal business hours] 12

13. Other related matters [Minor permitted, with written consent of responsible party, not only to be admitted as member of a registered association but also to participate in the establishment of an association (Clause 13 of Bill amending section 12 of Act] [Breach of provisions of Registration of Associations Act no longer sanctioned by imprisonment, but only by a fine (Clause 24 amending section 37 of Act]