Key Changes to Prepare for

Many of us are involved in Incorporated Societies through sporting, hobby, philanthropic and residents’ groups. The Incorporated Societies Act 2022 (the new Act) was passed in 2022. It replaces the last Act from 1908, so a review was in order. It isn’t surprising there are some changes, such as reregistering a society, with a compliant constitution.

Don’t fret, there is a transitional period. This is to provide time to become familiar with the new requirements and for societies to act.

Summary of some of the key changes:

1. Constitution: all constitutions will need to be reviewed for compliance with the new requirements
2. Members: minimum reduced from 15 to 10 consenting members
3. Dispute resolution: having an effective dispute resolution procedure is now mandatory
4. Committee: they must be chosen by the society to manage, direct and supervise operations
5. Officer duties: are now clearly defined. They are similar to company directors. Officers now have an obligation to disclose conflicts of interest. Undischarged bankrupts and those convicted of certain dishonesty offences etc are excluded
6. Financial statements and annual returns: must be filed and new thresholds determine which societies will also need to have their financial statements audited
7. Reregistration: there is a reregistration requirement where the reviewed constitution must be provided. This period is from October 2023 to (likely) April 2026
8. Surplus assets on wind up: after a society is wound up and all debts have been settled, surplus assets must now be given to one or more not-for-profit organisations

New enforcement provisions have been introduced. All societies will need to get prepared. The amount of action required will depend on the society’s constitution and how it is currently run.

We are happy to assist with all your legal needs including undertaking constitution reviews, preparing reregistration applications and merging societies, where appropriate.