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Chapman Tripp has made submissions on the Incorporated Societies Bill, currently being reviewed by Parliament’s Economic Development, Science and Innovation Committee.
We generally support the Bill, and consider it improves the previous exposure draft and the Law Commission’s recommendations.
However we submit that the purposes of a society should have elevated importance in the legislation, and form a clear part of the interpretation of officers’ fiduciary duties (see discussion on clause 49 in our submission dated 28 May 2021).
We are also concerned that the Bill draws on the flawed Companies Act reckless trading directors duties, to impose similar duties on officers of societies. We submit this is inappropriate and should not be included in the new Incorporated Societies Act at this time (see our discussion on clauses 53 and 54 in our supplementary submission).
