Regulatory update – New Zealand

As of October 5th, societies wishing to maintain their status will need to re-register under the new Incorporated Societies Act.

What’s new?

📑 Committee
The new Act brings key changes including a committee requirement. Societies are now required to have a governing body with at least three people who are equal officers of the society. Most committee members must be members of the society or representatives of the corporate entity.

👩‍💼 Officers
The concept of an officer is defined more explicitly under the new Act. Under the new law, officers can be anyone holding a position in the society.  It may concern committee members such as Treasurer, Chairperson or any other roles supporting the functioning of the society. The new Act provides clearer specific duties for officers as compared to the former Act. In line of the new Act, officers must act in good faith, exercise power properly, abide by the society’s constitution amongst others.

👨‍💼 Members
The minimum number of members has been reduced from 15 to 10. A member can either be an individual or a corporate entity – a corporate entity equals 3 individual members. As far as members’ duties are concerned, they must now notify the society of any changes of their contact details.

The new Act provides for a transition period of about 2.5 years for currently registered societies to re-register.