The University of Sydney Union (USU) has formally voted to endorse pursuing legal incorporation and a tentative draft constitution for an incorporated USU.
At midday on 25th June, USU members were asked to vote on three motions on notice at a Special General Meeting (SGM). These asked the USU membership to endorse: the pursual of incorporation, the proposed draft constitution of an incorporated USU (which is subject to change at the suggestion of the University or the membership), and “the Board, through Bryson Constable and Benjamin Hines”, to bring these endorsements into effect.
President Bryson Constable opened the SGM, explaining the threefold motion and the changes that occurred after the previous failed SGM in April. He explained the issues of running the USU unincorporated, including the fact “we cannot control our own buildings or our own contracts”. Constable also clarified that “incorporation is not corporatisation”, and affirmed the USU’s desire to remain a not-for-profit charity.
Vice President Benjamin Hines then spoke to the motion, affirming to USU staff and members that “this means absolutely nothing for your day-to-day… all this is doing is allowing the USU to become a legal entity.”
Constable then opened the floor to comments and questions from members. USU Board Director Sargun Saluja spoke in favour of the motion, saying “incorporation is very necessary for the autonomy of the organisation.”
The vote passed, with 82 in support of and four against the motion.
The USU will now begin the process to legally incorporate as a ‘Company Limited by Guarantee’.
This sees a notable change from their original incorporation plan for 2024/2025, which initially sought status for the USU as an ‘Incorporated Association’ and extensive governance changes. This plan failed to reach the two-thirds majority required for approval at the April SGM.
At the time, proponents of the plan believed the University would not endorse an incorporation which did not include extensive governance changes.
The new incorporation plan is expected to take six months. It will see the USU open a shell company later this week. The current USU will then audit all of their current assets and contracts, and, awaiting approval from the University Senate in November, will call another General Meeting to endorse the transfer of all assets and closing of the current USU.
When approached for comment, Constable said “[incorporation has] been twelve months, and thirty years, in the making. We are already ready to go in setting up the shell company by the end of the week and starting the process of transfer… Hopefully we are able to move quickly to enact the will of the members. I’m very happy.”
