The Incorporated Societies Bill 2021 is set to bring about big changes for the 24,000 societies currently on the Incorporated Society Register.
The bill proposes to put in place a modern framework of basic legal, governance, and accountability obligations for incorporated societies and those who run them, including:
- Putting in place six express duties on officers of incorporated societies, modelled on directors’ duties in the Companies Act 1993.
- The introduction of rules and procedure relating to conflicts of interest for officers.
- Providing a mechanism for societies to amalgamate with each other.
Societies will need to have a constitution which meets the new standards imposed by the legislation once it’s passed into law, so we recommend all Incorporated Societies take the time to review their current rules.