Incorporated Societies Act 2022

Enacted in April 2022 and replacing the 1908 act, the Incorporated Societies Act 2022 requires all incorporated societies to register under the new act.  This opens from October 2023 through to April 2026 (i.e. 2.5 years to register under the new act).  In the meantime, incorporated societies operate under the old 1908 act. The regulations are currently being developed to support the new act and is the reason new registrations are not yet open.

Some significant changes under the new act:

• minimum membership decreases from 15 to 10
• must have a committee of at least 3 members
• now a definition of who are officers and their duties (akin to Directors as per Companies Act 1993)
• Annual General Meeting must be held within 6 months of the society's year-end
• Financial statements must be filed along with an annual return and within 6 months of year-end (similar to charities)
• Financial statements to comply with XRB accounting standards (unless a small society that is not a donee organisation/charity, if operating payments and current assets are less than $50k for the previous two years).  The accounting standards are the same as those used for charities but the criteria around around selection of tier are still to be determined.
• Criminal offences have been beefed up

Other implications:
There will be auditing requirements and details of this will be subject to consultation in August 2022.  There will also be a requirement to have a documented disputes resolution procedures and and Schedule 2 of the new act provides a template that can be adopted.  New members will need to give their consent to become a member and so a process should set-up for this.  Registration under the new act also allows an opportunity to update the society's constitution.