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Incorporated Societies Act 2022

Administration of societies - Committee and officers - Officers’ duties

59: Duty in relation to obligations

You could also call this:

"Officers must only agree to promises the society can keep"

Illustration for Incorporated Societies Act 2022

You are an officer of a society. You must not agree to the society taking on an obligation unless you believe it can fulfil that obligation when needed. You must have reasonable grounds for this belief at the time you agree to the obligation, as stated in the Incorporated Societies Act.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS100934.

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Part 3Administration of societies
Committee and officers: Officers’ duties

59Duty in relation to obligations

  1. An officer must not agree to the society incurring an obligation unless the officer believes at that time on reasonable grounds that the society will be able to perform the obligation when it is required to do so.

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