Appendix
8 Rules or Objects of an Incorporated Society: Guidelines and Comments
Section 6 of the Incorporated Society’s Act 1908 requires a society’s rules to include the following as a minimum. Comments have been included for your information.
The minimum requirements of the Act are listed below. You may choose to expand the rules to cover other foreseeable circumstances. (Following is an except from the Act)
“The rules of a society shall state or provide for the following matters:”
“The name of the society, with addition of the word “Incorporated” as the last word in the name”
“The objects for which the society is established.”
Comment: This is a statement of the purpose and aims of the society. The objects should be as broad as possible to ensure that all the activities you may want to pursue now or in the future are covered. The objects are different from the powers of a society. The powers are the factors that allow a society to fulfil and carry out its objects.
“The modes in which persons become members of the society.”
Comment: You must describe the way in which prospective members apply to join and who decides whether the application should be accepted.
“The modes in which persons cease to be members of the society”
Comment: Set down the ways in which members can resign or be expelled or how they can have their membership terminated for such things as non-payment of subscriptions.
“The mode in which the rules of the society may be altered, added to, or rescinded.”
Comment: As time passes and the membership changes, some rules may become outdated or circumstances may arise which are not covered by the rules. To overcome such problems, you must include a rule which describes when and how the rules can be altered.
“The mode of summoning and holding general meetings of the society, and of voting there at.”
Comment: You must make rules to cover when meetings (annual general meetings, monthly or special meetings) will be held, how members are to be advised, place of the meeting and how the meeting will be conducted (i.e., chairperson, quorum, notices of motion, the type of voting to be used and how special general meetings may be called.)
“The appointment of officers of the society”
Comment: The rules must stipulate what officers the society will have, the number of committee members, how they are elected and appointment of temporary replacements.
“The control and use of the common seal of the society.”
Comment: The common seal is a rubber stamp used on document issued in the society’s name to show they are valid. As the seal is a very valuable item, it must be kept in the custody of a responsible person at all times (e.g., the secretary) and used only as authorized. There must be a rule which says who will have control of the seal and details the circumstances in which it can be used.
“The control and investment of the funds of the society.”
Comment: Rules are required that specify how money is to be handled, ie, who will receive it, write receipts, open and operate bank accounts, write cheques and make payments. If you wish to invest surplus funds, rules will be required to make investments and to specify what types of investments are permitted.
“The powers (if any) of the society to borrow money.”
Comment: If you envisage ever having to borrow money, you must have a rule outlining the procedure for authorizing the loan, e.g. by resolution passed at an annual general meeting.
“The disposition of the property of the society in the event of the society being put into liquidation.”
Comment: When a society comes to the end of its existence, it is liquidated and any surplus assets are available for disposal. A rule is required that statues who or what is to receive the surplus, or makes provision for this decision to be made at a later date, e.g. at the time of liquidation. It is possible for the surplus to be given to one or more societies, perhaps those with similar objects or activities, a parent body or even divided up amongst those members at the time of liquidation.
“Such other matters as the Registrar may require to be provided for in any particular instance.”
Comment: If all the above points are included and the Registrar still feels that the rules are not adequate, additions or alterations may be required before the society can be incorporated.
Contact for Enquiries
Fund Administrator
Sustainable Farming Fund
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
Tel: 0800 100 087
Fax: 04 894 0741
Contact this person
