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Incorporated Societies Act 2022

Administration of societies - Committee and officers - Conflict of interest disclosure rules

62: When officer has interest

You could also call this:

"What happens when a society officer has a personal interest in a decision"

Illustration for Incorporated Societies Act 2022

You are an officer in a society. You have an interest in a matter if you may get a financial benefit from it. You also have an interest if a family member may get a financial benefit from it. This includes your spouse, partner, child, parent, or other relatives. You have an interest if you have a financial stake in a person or company related to the matter. This can be because you are a partner, director, or trustee of that person or company. You also have an interest if the society's rules say you do. However, you do not have an interest just because you get paid or insured for your work. You do not have an interest if all members of the society benefit in the same way. You do not have an interest if your benefit is very small and will not affect your decisions. You do not have an interest if the society's rules say your interest is allowed. In this law, a matter can be what the society does or a deal it makes. It can be an arrangement, agreement, or contract the society enters into. You can read more about this in sections 63 to 65.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS100941.

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"What you must do for your society"

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63: Duty to disclose interest, or

"Tell the committee if you have a personal interest in something to do with the society"

Part 3Administration of societies
Committee and officers: Conflict of interest disclosure rules

62When officer has interest

  1. An officer (A) is interested in a matter if A—

  2. may obtain a financial benefit from the matter; or
    1. is the spouse, civil union partner, de facto partner, child, parent, grandparent, grandchild, sibling, nephew, niece, uncle, aunt, or first cousin of a person who may obtain a financial benefit from the matter; or
      1. may have a financial interest in a person to whom the matter relates; or
        1. is a partner, director, officer, board member, or trustee of a person who may have a financial interest in a person to whom the matter relates; or
          1. is interested in the matter because the society’s constitution so provides.

            1. However, A is not interested in a matter—

            2. merely because A receives an indemnity, insurance cover, remuneration, or other benefits authorised under this Act; or
              1. if A’s interest is the same or substantially the same as the benefit or interest of all or most other members of the society due to the membership of those members; or
                1. if A’s interest is so remote or insignificant that it cannot reasonably be regarded as likely to influence A in carrying out A’s responsibilities under this Act or the society’s constitution; or
                  1. if A’s interest is of a kind that is specified in the society’s constitution for the purposes of this subsection.

                    1. Subsection (2)(d) applies only if the conditions prescribed by the regulations (if any) are satisfied.

                    2. In this section and sections 63 to 65, matter means—

                    3. a society’s performance of its activities or exercise of its powers; or
                      1. an arrangement, an agreement, or a contract (a transaction) made or entered into, or proposed to be entered into, by the society.

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