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Mayor's column: changes coming for incorporated societies

The Central App

Mayor Tim Cadogan - Opinion

13 January 2024, 4:15 PM

Mayor's column: changes coming for incorporated societiesTim Cadogan. PHOTO: The Central App

So many of us in Central Otago belong to Incorporated Societies, many of us without knowing it. 


Chances are the sports team you play for is part of a Society or the group you meet with to enjoy your hobby may well be too. Quite often people who aren’t on the committee don’t even realise the organisation is an Incorporated Society and I have even known a committee who were sure they were an Incorporated Society and used “Inc” in the title that weren’t.


 

Anyway, there’s some changes coming in the way Incorporated Societies are run in New Zealand that people, especially people on committees of such Societies need to be aware of. 


These are as a result of the Incorporated Societies Act 2022 (the new Act), which came in to force on 5 October 2023, has made to the Incorporated Societies Act 1908. 



Isn’t it a bit crazy to think that until last October the Act running Societies came from over 110 years ago, even if there have been numerous amendments since. 


Interestingly, as far as I can tell, the oldest Act of Parliament still in force in New Zealand is the English Laws Act 1858. This Act was originally passed by the Parliament of the United Kingdom and was later extended to New Zealand and essentially applied English law to New Zealand. But I digress.

 

Key changes between the 1908 and 2022 Act are:

  1. The minimum number of members drops from 15 to 10 and guess what? New members must actually consent to being so; no more getting roped in because you weren’t at the meeting to say no! 
  2. A committee is now required. Surprisingly, this was not a requirement of the 1908 Act.
  3.  Who is an Officer is defined and duties clearly articulated.
  4.  There must be a dedicated and named contact person for the Registrar.
  5.  The date of the AGM is set at six months from the balance date.
  6.  Importantly, annual returns must now be filed and only those defined as “small” societies are exempt. Small societies are those that had operating payments and assets of less than $50,000 over the previous two years and are also not registered as charities or as being tax exempt.
  7.  What were “Rules” under the old Act are now the Constitution and there is clarity as to what a constitution must involve.


 

This isn’t a comprehensive list so if you want to see them all I suggest you go to Key changes | Incorporated Societies.

 

There are approximately 24,000 societies across the country that will need to reregister by 5 April 2026 to remain as an incorporated society, and I bet plenty of them are in Central. If you are on a committee, please check whether this applies to your organisation and make a start on this as I can imagine there is probably going to be a rush come early 2026.