sklingel@icnl.org
davidjrobinson@xtra.co.nz
(202)
452-8600 (64)
4 4759275
Civil society, community organisations and the law in Solomon Islands
When people get together with family, friends and neighbours to talk about and work on issues that they care about, they often form a group or organisation. In the Solomon Islands, as in other countries, there are laws that affect how these organisations are treated by government. For example, whether they have to pay customs or sales tax. This pamphlet sets out the general rules on when it is useful or necessary to register a community group and the advantages in doing this.
This area of activity is called civil society. Civil society refers to the area of life and work that sits between
personal and family relationships on one hand and government on the other. This
is the public area in which citizens outside government can organise and do
their work. It is the space in which formal and informal associations formed by
citizens operate.
In the words of one Solomon Island activist “civil society is people in the community getting together to help each other”
This pamphlet looks at how the laws protect the space where this takes place.
These associations are commonly known as NGOs (non government organisations) or
CSOs (civil society organisations). We use
the term CSO to cover all forms
of associations that exist as charities, NGOs, non-profits, and all other such
organisations which do not operate to make profit for private gain.
Community
organisations or CSOs in the Solomon Islands include both membership and
non-membership organisations, and those carried out for the benefit of members
and those that operate for public benefit.
Some are formal organisations with legal status and some operate informally.
Many community-based organisations or associations currently operate without
any formal status. This does not affect the effectiveness of their operations
or the rights they enjoy as civil society organisations.
The right to form an association for a wide range of community purposes is underpinned by the Solomon Island constitution, as long as the organisation operates within the general rule of law.
Many CSOs
in Solomon Islands are engaged primarily in social development work. They
include church-based organisations, special interest groups, broad-based
development organisations, trusts, and community-based organisations. In
general, these organisations pursue the common goal of achieving a better life
for members and people generally, as well as contributing towards the
development goals of the country.
Why should the law be
concerned with these activities?
The law
- Protects the space where people can come together to deal with common issues and problems, and to form organisations for this purpose.
- Provides protection for civil society organisations, certainty to funders about whom they are dealing with, and reassurance to government about the consistency of their purpose with national norms and procedures as reflected in the Constitution and laws of the country.
Besides written laws based on international
treaties or English Common law, in the Solomon Islands there is also kastomary
law which flourishes through word of mouth. Despite little being written
down, kastom or kastomary law has a great impact on the life of
every rural Solomon Islander almost on a daily basis.
How to
register.
The main forms in which CSOs can register are as a:
· charitable trust,
· cooperative or
· credit union.
When you register as any of these you need to:
· provide the names of members,
· set out the purpose of the organisation, and
· lodge a constitution setting out how it will be run.
Charitable Trusts
The
Charitable Trusts Act governs the incorporation of associations established for
religious, educational, literary, scientific, social or charitable purposes.
Organisations need to apply in writing to the Registrar of Companies for a
certificate of registration. When the Registrar is satisfied with the nature,
extent, objects and circumstances of the applicant, they will issue a
certificate. The Registrar may require additional
information to verify the statements and particulars provided in the
application.
Cooperative Societies
To register under the Cooperative Societies
Act, an organisation must promote the economic interests of its members in
accordance with cooperative principles. The certificate of registration is
issued by the Registrar of Cooperative Societies. Information required includes the name of the
society, particulars of the meeting where it was agreed to register, a list of
members and the funds subscribed by each, names and addresses of the committee
and officers, and address of the society. This must be accompanied by three
copies of the proposed bylaws of the society. A certificate of registration
will be issued when the fee (currently SI$2.00) is paid.
Credit Unions
To register
under the Credit Unions Act, you need to file a Memorandum of Association (MOA)
together with an affidavit verifying the signatures to the MOA, a copy of the bylaws,
a report of the initial meeting of the association, and the prescribed fee. The
MOA must include the name of the credit union; group of persons to whom
membership is limited; address of the credit union office; par value of its
shares; and name and particulars of members and their subscriptions. The
Registrar then issues a certificate of incorporation.
Registration agencies
Responsibility
for registering non-membership CSOs is generally with the Registrar of
Companies. For membership
organisations registration is as follows:
- Cooperative societies are
registered by the Registrar of Societies.
- Credit unions are registered by
the Registrar of Credit Unions.
- Charitable trusts are
registered by the Registrar of Companies.
Registration
of cooperative societies and charitable trusts are currently carried out by a
Public Service officer designated as the Registrar-General. Credit unions
register with the head of the Financial Institutions Department within the
Central Bank of Solomon Islands.
Unregistered organisations
However, all community organisations do not need to register.
Your group may simply want to meet to discuss issues of concern and/or carry out local activities without employing staff. In this case there is no requirement to register.
Registering can be an advantage if you decide to:
- take action in a wider area,
- employ staff,
- rent or buy property,
- need or desire liability protection for officers or staff,
- raise funds from local or international funders.
Although it is not compulsory to register an organisation there are some advantages that should be considered when deciding whether to register.
What are the advantages of becoming registered?
Registration can be useful, for example, if your organisation wishes employ staff or to rent or own property. This means that the organisation can act in its own name, with any potential legal liability going to the organisation, rather than an individual or family. This provides protection for members of the group from anyone taking legal action against them.
Registering may also be a requirement of funders, especially international funders.
Some tax concessions and exemptions are available to registered organisations.
For example, the
remission or refund of all or part of any duty on any goods imported or
exported, or manufactured in Solomon Islands can be made at the discretion of
the Minister.
Customs and Excise Tax and Goods Tax
- The Goods Tax Act
provides for the exemption from Goods Tax of goods, equipment and materials
used, (and not for sale) by not for profit educational institutions, sporting
bodies, religious, charitable or benevolent institution and churches.
Income Tax - Under the Income Tax
Act income gained in or
derived from the Solomon Islands is exempt from tax for any religious,
charitable, benevolent or educational institution approved by the Minister; any
registered cooperative society with the principal objective being the
acquisition or development of agricultural land; an association to further any
amateur sport or game; income of any club, society or association, organised
and operated exclusively for social welfare, civic improvement, pleasure or
recreation.
However, there is no provision for tax relief
or deductions on personal donations for charitable or related causes.
Sales Tax - The Sales Tax Act provides the Minister with the ability to
decide if anyone is entitled to relief from sales tax and this may be subject
to any condition the Minister may impose.
Stamp Duty - The transfer of property to or in trust for any association established for religious, charitable or educational purposes along with organisations registered under the Cooperative Societies Act is exempt from the imposition of stamp duty.
If you have any questions about registration or
the operation of the law affecting civil society and community groups contact:
Development Services Exchange dse@solomon.com.sb
PO Box 556, Honiara, Solomon Islands
ICNL Pacific Civil Society Law Programme davidjrobinson@xtra.co.nz
113 Creswick Terrace,