Incorporated Societies Act 2022 and Constitution advice
You may have become aware that the Incorporated Societies Act 2022 came into law in April. We would like you to be aware of some of the key timelines regarding the Act.
Whilst the Act is now law, its provisions will not come into effect until October 2023. This means that the provisions in Incorporated Societies Act 1908, which existing Societies are registered under will still apply until then, and no changes need to be made to your club structure or constitution at this time. From October 2023, Societies will be able to register under the new Act and will have until March 2026 to file a revised constitution that complies with the new legislation to ensure they remain an Incorporated Society.
Above all our advice is not to panic but do feel free to familiarize yourself with the requirements of the new Act, and if you are considering changes to your constitution or structure, then timing these changes to occur from late 2023 onward may make sense.
Tennis NZ will be providing constitution templates for clubs within this section of the Clubs Toolkit once TNZ’s constitution has been reviewed. This review will take place during 2023 following the Tennis NZ AGM at the end of 2022.
Some of the changes that will apply once the provisions in the Act come into force include:
At least 10 members are now required to register an incorporated society (15 were required under the old Act). The society must have always at least 10 members. People will need to consent to become a member, and a Membership Register must be maintained and include specified minimum data.
Each society must have a committee comprising three or more qualified officers. A majority of those officers must be members of the society and/or representatives of corporate bodies that are members of the society. This committee will be the ”governing body of the society”, responsible for the management of its operations and affairs.
Review and update of rules
Procedures for resolving disputes and other grievances between members, as well as between members and the society, must be documented and set out in the constitution. The society’s rules need to include certain provisions, for example nominating a not-for-profit entity to which surplus assets are given if the society winds up.
Every society must file financial statements with the registrar within six months after the balance date of the society. There may be some changes to required reporting standards depending on the size of the entity.
- April 2022 – Incorporated Societies Act 2022 passed into law
- Each association and club has until March 2026 to re-register
- The provisions of the new Act only kick in once re-registration takes place. Until then the old Act applies.
- No organisation, even if they want to, can re-register until October 2023.
Sport NZ have delivered a webinar to allow clubs to understand how to comply with the new changes when they come into effect. This webinar is hosted on the Sport NZ learning portal and can be accessed by registering HERE
This webinar will help you understand:
- The main changes in the new act
- How this is an opportunity for leadership through cohesive, co-ordinated sector approach
- The timeframe for making these changes
- What support will be available to the sector in the form of templates, guidance and future webinars
Sport NZ are committed to helping in this area. Sport NZ key changes to Incorporated Societies Act and timeframes for compliance can be found HERE
Akitve Auckland also have a comprehensive overview of the Incorporated Societies Act 2022 HERE
Here is a link to an MBIE webpage which provides occasional updates regarding the Act.
Here is a link to the legislation itself: Incorporated Societies Act 2022