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 clubs re-register within the timeline outlined below. This means that the provisions in Incorporated Societies Act 1908, under which existing societies are registered will still apply until re-registration takes place, 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 April 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. Until re-registration under the new act takes place the existing act applies.  

Tennis NZ will be providing constitution templates for clubs within this section of the Clubs Toolkit once Tennis NZ’s constitution has been reviewed. This review will take place during 2023, we are looking to finalise our constitution during the first half of 2024 and have a template document available to clubs during the second half of 2024.

Some of the changes that will apply once the provisions in the Act come into force include:

Membership

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.

Committee

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.

Financial Reporting

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.

Timelines

• 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

Webinar

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 

Other resources

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

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