An incorporated society in New Zealand is a type of legal entity designed for groups or organizations that operate not-for-profit and are formed to achieve a common purpose. By becoming incorporated, these groups gain a separate legal identity, meaning the society can own property, enter contracts, and sue or be sued in its own name, rather than that of its members.
Key features of incorporated societies include:
- Not-for-Profit Nature: Any income or assets must be used to advance the society’s objectives, not for the personal benefit of its members.
- Membership: At least 10 members are required to form an incorporated society, and it must maintain a register of members.
- Governance: They are typically run by a committee or officers who manage the society’s operations and ensure compliance with its constitution and the law.
- Legal Protections: Members are not personally liable for the society’s debts or obligations, provided they act within the law and the society’s rules.
Incorporated societies are often used by community groups, sports clubs, cultural organizations, and other non-profit entities.
Becoming an incorporated society suits organisations that exist for a purpose other than making a profit that’s likely to be operating for a long period. They are governed by the Incorporated Societies Act 2022, which introduced updated requirements for governance and transparency.
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