Practical implications of the Incorporated Societies Act 2022 and Regulations
Practical implications of the new Incorporated Societies Act 2022 and Regulations
As explored in our insight back in November 2023 the Government introduced the Incorporated Societies Act 2022 (the new Act) and the Incorporated Societies Regulations 2023 (the Regulations). These came into force from 5 October 2023.
Fast forward 11 months – what are the practical implications of these introduced changes and what do societies need to action?
Key Changes introduced
Constitution – all societies are required to have a written constitution.
Contact person – all societies must now have a contact person.
Committee –every society must now have a committee with at least three members that is responsible for managing the operation of the society.
Financial reporting requirements – annual returns must be filed within six months of the society’s balance date. Small societies must follow standards introduced by the new Act, whilst larger societies will need to comply with standards by the External Reporting Board (XRB).
AGM – an annual general meeting must be held within six months of the societies balance date.
Officer duties – the new Act introduces six specific duties imposed on Officers, derived from the duties imposed on directors under the Companies Act 1993.
Minimum number of members – the minimum number of members required has been reduced to 10.
Consent of members and officers – all new members and officers must consent to becoming a member.
Conflicts – there is a requirement to keep a record of any conflicts of interests that officers may have.
Who is affected?
All existing societies who wish to remain incorporated as well as any new societies who wish to be incorporated after 5 October 2023.
Timeframe for re-registration
All existing incorporated societies must re-register under the new Act no later than 5 April 2026. After this date any societies who have not re-registered will be removed from the register and will cease to exist.
How Young Hunter can assist your society
Re-registering under the new Act for some societies will be time consuming and intensive, particularly if your society does not already have a constitution. We can assist your society to ensure the process for re-registering is stress-free and completed correctly.
1. Constitution
If your society does not already have a constitution, we can draft a new constitution that meets the requirements under the new Act and the Regulations.
If your society has a constitution in place, it is likely amendments are required to comply with the new standards. We can work with you to review and amend your society’s existing constitution.
2. Manage the entire process
We can also manage the entire process of re-registration for your society. As well as drafting and reviewing your society’s constitution, we can prepare the required officer consent forms and other documents required to be able to apply for re-registration under the new Act and Regulations.
In addition, we can provide advice to the officers to ensure they understand and are able to comply with their new officer’s duties and assist with running annual general meetings.
For more information or to discuss how we can assist in re-registering your society under the new Act and the Regulations, please contact our commercial team on 03 379 3880.
