December 5, 2024
| The Incorporated Societies Act 2022 (2022 Act) came fully into force on 5 October 2023. To remain registered as an incorporated society you will need to reregister by 5 April 2026.
Following is information on financial reporting requirements, why a society must nominate a contact person, changes for societies which are also registered as charities, and a reminder to reregister your society. |
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Financial reporting requirements All incorporated societies must prepare and file annual financial statements that record their financial activities. The 2022 Act sets out minimum standards for small societies, while the External Reporting Board (XRB) sets out reporting requirements for larger societies – there are 4 tiers of XRB reporting standards. You’ll need to check which standards apply to your society. Watch a webinar on the XRB reporting tiers, particularly tiers 3 and 4. Read more on reporting for small societies, including a small society reporting template. Changes for societies also registered as charities There are 6,000 societies that are also registered as charities with Charities Services. If this applies to your society, you will still need to reregister your society under the 2022 Act by 5 April 2026 to retain your status as an incorporated society. Read more on the key changes for registered charities. Search the register to find out if your charity is also an incorporated society. Nominate a contact person for your society As part of the reregistration process, your society must have a dedicated contact person(s). It is compulsory for your society to include a clause, in its constitution, nominating at least one contact person, (but no more than 3), and how each contact person is elected or appointed. A contact person doesn’t need to be an officer of the society. For each contact person you must provide: · their name · an email address and · a physical or postal address and · a telephone number. These details are for the Registrar of Incorporated Societies to use, they won’t be made publicly available. Read more about what must be included in a society’s constitution. MBIE have created a constitution checklist you can use to make sure your society meets the minimum requirements under the 2022 Act. Reregister now It has been a year since the 2022 Act came into force. Societies that want to remain on the register must reregister by 5 April 2026. It takes some time to prepare for reregistration. We strongly recommend starting the reregistration process soon, so you don’t run out of time. If your society does not reregister under the 2022 Act by 5 April 2026, it will cease to exist. It will no longer be an incorporated society, which has the following implications: · This removes your right to make decisions on behalf of your society, such as, deciding what happens to any assets it owns. The Registrar could direct how to distribute them instead. · This takes away the separate legal identity your society previously had. This means members could be held personally liable for debts or obligations (such as leases) owed by the society. Similarly, your society could not sign any new contracts in its name. · The name of the society will no longer have any protection – another group could incorporate using the same name. Visit the Incorporated Societies website here.
Article courtesy of the Ministry of Business Innovation and Employment |
