On 10 November the Minister of Commerce and Consumer Affairs, Hon Paul Goldsmith, released an Exposure Draft of a new Incorporated Societies Bill, together with a request for submissions.
The closing date for submissions is Thursday 30 June 2016. All submissions should be sent to . Any queries should be sent to the same email address.
Further information and all relevant documents can be found on the Ministry of Business Innovation and Enterprise website.
What does this mean for registered charities?
Around 7,000 registered charities are also incorporated societies, so may need to make changes to their rules, depending on the legislation, and when it is enacted.
It is important for registered charities to understand the intended timeline arising from this legislative change. The timeline involves:
- A revised Bill based on submissions received will be introduced into Parliament in 2017 and hopefully enacted in 2018.
- After the new Bill is passed, it is intended that current incorporated societies will have up to four years to amend their rules to ensure they comply with the requirements of the new Act. Registered charities may have to change their constitutions.
- It will be at least four years from the date of enactment before the new Act is fully brought into effect. This may well be in 2022.
The timeline shows the changes will take time and therefore charities will not have to review their constitutions until the final form of the Incorporated Societies Act becomes clearer.
