NEW INCORPORATED SOCIETIES ACT – WHAT EXISTING SOCIETIES WILL HAVE TO DO AND BE AWARE OF

This Article is based on what was proposed in the 2015 Exposure Draft Incorporated Societies Bill, but also having regard to some modifications signalled in the Minister’s June 2019 Cabinet Paper.  The article will need to be revised after the new statute has been enacted, hopefully later in 2020. In the meantime, existing societies and new societies need to be aware of what was proposed in the 2015 Exposure Draft Incorporated Societies Bill and the Minister’s June 2019 Cabinet Paper, and may wish to take the proposals into account when considering their constitutions and other issues that may arise before the new statute comes into force.  While the new Act will not be exactly the same as what was proposed in 2015, we do not expect the eventual statute to differ significantly from the extracts from the 2015 Exposure Draft Bill set out in this Article).   1. Transitioning to comply with the new Act Important note: If a society does not re-register under the new Act, it will cease to exist on the transition date, but may later be restored to the Register, but if it is not restored its surplus assets must be distributed as prescribed in the new Act.  However: Every society continues to be subject to the 1908 Act until the later of the date it re-registers as a society under the new Act or the transition date (currently proposed to be 30 months after the new Act comes into effect), and Prior to the transition date, a society can amend its rules and make other arrangements to facilitate its transition to becoming a society...