Those who are members of Residents’ Associations may be aware of the new Incorporated Societies Act 2022 which will have a big impact on the way they operate.
Do your incorporated society rules comply with the new Incorporated Societies Act 2022? If you answered “no” or “not sure”, don’t panic. The old 1908 Act still applies until your society re-registers, but now is a great time for societies to update their rules to comply with the requirements of the new Act, and
then apply to the Registrar of Incorporated Societies for re-registration in October 2023.
The new Act looks to modernise and regulate the law relating to incorporated societies, which will have an impact on all existing incorporated societies, particularly Residents' Associations.
Three key impacts for Residents’ Associations are:
1. Compulsory re-registration: the period for re-registration will open in October 2023 (exact date to be confirmed) and run for 2.5 years through to April 2026.
2. Wind Up: under the old 1908 Act, it was possible for surplus funds to be distributed to members when a society was wound up, but now under the new Act surplus assets must be distributed to a not-for-profit.
3. Controlling Member: it will no longer be possible to have a “controlling member” in the way that you know it.
Other changes to the way Residents’ Associations are run include societies needing to be governed by at least three officers who are natural persons (not companies). The makeup of committees under the new Act has also changed.
Although April 2026 seems to be a while away yet, failing to re-register by that time will have big impacts on incorporated societies—but we’re here to help make the process simpler.
We have more details on the changes and a handy FAQ here.
Disclaimer: The content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose.