Incorporated Societies Bill An update March/April 2017

Progress to date June 2013 – the Law Commission recommended a new Act to replace the Incorporated Societies Act 1908 February 2014 – Government agreed in its response November 2015-June 2016 – draft Incorporated Societies Bill exposed for comment Today – MBIE close to completing its analysis of the 116 submissions

Main themes in submissions High level of support about the need for reform Excessive compliance for small societies Federal structures Interface with other legislation Model constitution/standard provisions

Support about the need for reform The 1908 Act lacks any guidance about the obligations of those running societies Much of what is legally necessary for running a society is not set out in the 1908 Act The 1908 Act says little about how internal disputes should be dealt with

Excessive compliance Access to information for members (clause 71) – too much potential to waste volunteers’ time Financial reporting (clause 83) – compliance with accounting standards too onerous for very small societies

Federal structures Definition of “officer” may need to be narrowed Revisit aspects of internal dispute resolution provisions

Interface with other legislation Charitable Trusts Act (charitable societies only) Employment Relations Act Agricultural and Pastoral Societies Act

Model constitution/standard provisions Doesn’t work Exploring other ways of being helpful Guidance material Constitution builder?

Next steps (optimistic) April 2017 – MBIE to report to the Minister of Commerce and Consumer Affairs on submissions June 2017 – Seek Cabinet decisions for changes September 2017 – MBIE to send drafting instructions to Parliamentary Counsel Office April 2018 – Bill introduced into Parliament 2019 – enactment 2021 – most provisions come into force 2023 – rest of the Act comes into force

Incorporated Societies Bill Comments Questions