The long-awaited Incorporated Societies Bill was introduced into Parliament last week, and it proposes to overhaul governance and member rights for incorporated societies.

While not materially changing the nature of societies’ structures, it outlines some important considerations that you as an officer or a member of a society ought to be aware of.

Societies will need to re-register

When the Act passes, all existing societies will cease to exist on the transition date specified in the Act if they do not re-register.

Societies applying to re-register must have constitutions which are consistent with the new requirements in the Act.

Attention will need to be given to new requirements relating to the composition, roles, functions, powers and procedures of the society’s committee and officers, and procedures for resolving disputes between members and the society.

Constitutional amendments can be challenged by members

The Act will formalise the process for changing a society’s constitution. Potentially the Act will curb the relative freedom of societies to set their own rules and makes constitutions more open to challenge by members where:

• Amendment procedures were not followed correctly; or
• The constitution operates in an oppressive, unfairly discriminatory, or unfairly prejudicial manner.

Greater members’ rights

Those running societies now need to be more aware of their duties, with legislation giving members clear and enforceable rights and the potential for personal liability for officers.

The Act will allow courts to intervene in disputes between a member and the society or between members, including where there is a possible breach of natural justice.

What should I do?

Let us immediately assess whether your current society’s rules are likely to be affected and on what changes will be needed.

Get our assistance to reregister and establish a new compliant constitution for your society once the Act is passed.