New Legal and Regulatory Framework for the NGO sector in Mauritius Law Reform Implementation

1. New Legal and Regulatory Framework for the NGO sector in MauritiusLaw Reform Implementation Pierre Rosario DOMINGUEChief Executive OfficerLaw Reform Commission 26 March 2008

2. 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 [Amendments to sections 3, 5 and 10 of the Act]

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

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

5. Objects of the Amendments to Registration of Associations Act & to the Regulations (3) • Clarify the rights and duties incurred by association prior to incorporation [To make provision for ‘Pre-Registration Arrangements’]

6. Objects of the Amendments to Registration of Associations Act & to the Regulations (4) • Ease the operation of associations [Amendment to 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] [Amendment to section 9(3) of Act to ease disposal of property] [Repeal 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. Objects of the Amendments to Registration of Associations Act & to the Regulations (4) • Ease the operation of associations (Contd) [Amendment to 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)] [To make provision for right of associations to engage in economic activities] • Improve the process for the transformation of associations • [To make provision for Splitting up of an association into two or more associations]

8. Objects of the Amendments to Registration of Associations Act & to the Regulations (4) • Improve the process for the winding up of associations [To amend section 15(1)(e) of Act by clarifying when an association shall be regarded as having ceased to function] [To amend section 16 of Act, with a view to ensuring that an association can be wound up within 30 days] [To amend 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. 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 [To make provision for ‘Prohibition against private benefits in the application of funds’]

10. Objects of the Amendments to Registration of Associations Act & to the Regulations (5) • Duties of officers and committee members clarified [To make provision for 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. 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 only apply to those who have the means to so afford] {Amendment to Regulation 3} [To amend section 31 of Act to ensure inspections are conducted after advance notice and during normal business hours]

12. Objects of the Amendments to Registration of Associations Act & to the Regulations (7) • Other related matters [Minor to be 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 [amendment to section 12 of Act] [Breach of provisions of Registration of Associations Act no longer sanctioned by imprisonment, but only by a fine (amendment to section 37 of Act]

13. Public Benefit Status-Accountability Standards for Fiscal Benefits (1) • Concept of “public benefit” needs to be clarified • Procedure and Requirements for obtaining approval should be laid down [Documents in support of application laid down; requirement for application to be processed within 30 days] [Enhanced Internal Governance requirements needed for institution to be approved as charitable]

14. Public Benefit Status-Accountability Standards for Fiscal Benefits (2) • Need for Enhanced Accountability Standards, such as Submission of Annual Report (and public disclosure thereof)

15. Next Steps - • Need to assess the additional resources and staff training needed at Registrar’s Office to ensure smooth implementation of reform proposals • Capacity Building of NGOs through Education on rights and responsibilities under new legal and regulatory framework