special report
More than 11,000 clubs, nearly half of New Zealand’s incorporated societies, charities, unions and political organisations, face automatic dissolution after 5 April warns the website “Centrist”.
“What was framed as a technical governance update is becoming a test of how much red tape New Zealand’s civil society can absorb in practice,” it said.
Under changes passed in 2022, societies must re-register under a modernised Incorporated Societies Act, replacing the century-old 1908 law.
“Societies that miss it will legally cease to exist, forcing complex wind-ups or restructuring, potentially triggering frozen bank accounts, funding losses, voided leases, and personal liability for members.”
However Council of Outdoor Recreation Associations Andi Cockroft said the requirements are relatively easy.
“The changes are not particularly onerous,” he said and added,” And no one can say they weren’t warned. It all began back in 2022 – three years ago – with the Labour government.
Many outdoor activities exist within a club framework from fishing to hunting to tramping and others.
Consumer Affairs Minister Scott Simpson has urged groups to “rattle your dags” and complete the process, describing it as relatively straightforward and supported by templates and guidance from the Companies Office and Sport NZ.
However one Wellington club with around 30 members, says the process has taken months and imposed a heavy compliance burden on volunteers with no legal or policy background.
“Drafting, consulting members, and approving a constitution nearly three times longer than before has proven time-consuming and disruptive to core community activity, reported the “Centrist.”
Ironically, the Labour Party, which passed the law, has not yet re-registered but expects to meet the deadline.
Two organisations where I was involved, went through the process. Yes, it was time consuming but straight forward using an online template that generated a new draft “compliant constitution” which helped, just modifying the old one, calling a special meeting to approve the changes and then putting in the application with approval occurring fairly quickly.
Why? This is typical Labour red tape, with never-ending bureaucracy. How many extra public servants are being employed to check all the paperwork? I thought the coalition parties were opposed to red tape.
“Club member” should realise that the current coalition could easily have reversed this and did not – conclusion is “they like it”. Having once worked for a charity I know how the bureaucrats dislike them. The Coalition is manipulated by the same people as manipulated the last government. Roll on “Yes Minister”.
The process is pretty straightforward the hardest part seems to be calling a special meeting to approve the changes. I did one last year that took ages for Companies Office to approve, but the latest ones are approved in minutes – I assume they now use AI to accept or reject you new Constitution.