As you are likely aware, significant changes have been made to the legal framework governing Incorporated Societies with the passing of the new Incorporated Societies Act on April 6, 2022. These changes are aimed at enhancing the governance functions of societies.
What it means for you
- All incorporated societies will need to re-register with the Registrar by April 2026 with a constitution that is compliant.
- Societies must review their constitution and make any necessary modifications. Societies needing few changes may decide to update, while others may see this as a good opportunity to start afresh.
To help clubs navigate the changes, Yachting New Zealand have developed this page for easy access to resources.
Key Changes:
- Minimum number of members required for an incorporated society/club is reduced from 15 to 10.
- Consent of each new member of the club needs to be collected at the time of joining. Click here for more information on members' consent.
- Each club must appoint at least one contact person to be contactable by the Registrar.
- There must be at least 3 Officers on the club Committee/Board
- Officers have new duties, which include:
- acting in good faith and in the best interests of the club
- complying with the 2022 Act and the constitution
- exercising the care and diligence that a reasonable person would exercise in the circumstances
- Officers on the club's Committee/Board must be members of the club and all Officers must not be disqualified from being an Officer.
- Dispute resolution processes must be included in the club's constitution and the processes must be consistent with the rules of natural justice. Click here for more information on dispute resolution processes.
- New rules define when an Officer has a conflict of interest and a duty to disclose conflicts.
- Winding up - surplus assets must be given to an identified not-for-profit organisation or class of organisation that is identified in your constitution.
Yachting New Zealand updated it's constitution which was approved at last years AGM and this has been approved by the Incorporated Societies office. This may be of help when updating your own clubs constitution. Click here to view the Yachting NZ constitution.
Resources:
Presentation from the Incorporated Societies webinar.
Incorporated Societies Act webinar - May 2024
Sport NZ Resources
Sport NZ has developed helpful resources including constitution templates, FAQs and a compliance checklist.
https://sportnz.org.nz/resources/incorporated-societies-act-2022-and-regulations/
Incorporated Societies website
Click here to link to the Incorporated Societies website.
Sport & Recreation Integrity Commission
Click here to link to the Sport and Recreation Integrity Commission information page.
Please contact your Regional Development Manager if you have any questions or need assistance with updating your constitution.