The Replacement Incorporated Societies Act Is Looming
Did you know that in New Zealand incorporated societies are the second most popular organisational structure for not for profit organisations? With incorporated societies accounting for almost a quarter of all groups throughout New Zealand. Currently incorporated societies are set up under the Incorporated Societies Act 1908. Once incorporated a society can legally run its affairs as a corporate body.
There are currently 24,000.00 incorporated societies registered in New Zealand. The most common form of incorporated society in New Zealand are sporting organisations. This may be your local rugby, netball, or swimming club. Other examples of an incorporated society include art, music and conservation groups.
If you are involved in an incorporated society, you need to be aware that significant changes are looming as the New Zealand legal framework prepares for the first update to the Incorporated Societies Act for over 100 years.
So, what does this mean for you? Here at Collins & May Law we have been encouraging clients to get on to revising the framework of incorporated societies sooner rather than later. Incorporated societies will not only need to review and rewrite their constitutions to comply with the new legislation but ensure that high quality governing structures and disciplinary processes are in place.
New and improved governing structures and processes that you can expect of an incorporated society framework include but are not limited to having a committee of three members at a minimum and that the officers of the society carrying out the affairs and operations need to ensure they are not disqualified from being a committee member.
Our team have been proactively following the proposed Amendments and Bill since it was first proposed by the Law Commission.
We can advise your Club on any queries you may have surrounding the proposed Act and how it may affect you and your organisation. We can assist you when it comes to restructuring your existing governance structure or alternatively assisting in establishing a compliant governance structure with the new Act. It is essential that you get assistance regarding your incorporated society before it is too late. Get in contact with us today.
Don’t wait until the inevitable bottle-neck of 2400 clubs and organisations looking to meet a pending deadline.
