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Incorporated Societies Act 2022

Administration of societies - Financial gain

22: Society must not be carried on for financial gain of its members

You could also call this:

"Societies can't be run to make money for their members."

Illustration for Incorporated Societies Act 2022

You cannot run a society to make money for its members. If a society does this, an officer of the society can get a fine of up to $50,000 if they allowed it to happen. You can look at subpart 4 of Part 4 and section 210 for more information about what happens if a society is run for financial gain.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS100884.

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21: No notice or knowledge of constitution merely because it is registered or available for inspection, or

"Being able to see a society's rules doesn't mean you know them or have to follow them."

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23: Financial gain, or

"When a society helps its members gain money or benefits"

Part 3Administration of societies
Financial gain

22Society must not be carried on for financial gain of its members

  1. A society must not be carried on for the financial gain of any of its members.

  2. An officer of a society commits an offence and is liable on conviction to a fine not exceeding $50,000 if—

  3. the society fails to comply with subsection (1); and
    1. the failure took place with the officer’s authority, permission, or consent.

      1. See subpart 4 of Part 4 (which allows a society to recover a financial gain from a member) and section 210 (which allows the High Court to put a society into liquidation if it is carried on for the financial gain of a member).

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