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Incorporated Societies Act 2022

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

64: Consequences of being interested in matter

You could also call this:

"What happens if you have a personal interest in a decision made by your society's committee?"

Illustration for Incorporated Societies Act 2022

You are part of a committee for a society. If you have a personal interest in a matter, you cannot vote on it. You also cannot sign documents about the matter. However, you can join in discussions about the matter and be there when the committee makes a decision. If you cannot vote on a matter, you are still counted when checking if there are enough people at a meeting. Other committee members can agree to let you vote or sign documents if they are not interested in the matter. If most of the committee members have a personal interest in the matter, a special meeting must be called to decide on it, you can find more information about this by looking at the related legislation.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS100943.

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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"

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65: Consequences of failing to disclose interest, or

"What happens if someone doesn't disclose their interests?"

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

64Consequences of being interested in matter

  1. A member of the committee who is interested in a matter relating to a society—

  2. must not vote or take part in a decision of the committee relating to the matter; and
    1. must not sign any document relating to the entry into a transaction or the initiation of the matter; but
      1. may take part in any discussion of the committee relating to the matter and be present at the time of the decision of the committee (unless the committee decides otherwise).

        1. However,—

        2. a member of the committee who is prevented from voting on a matter under subsection (1) may still be counted for the purpose of determining whether there is a quorum at any meeting at which the matter is considered; and
          1. subsection (1)(a) or (b) does not apply to a member of the committee (A) in relation to a particular matter if all members of the committee who are not interested in the matter consent to A acting as referred to in that paragraph.

            1. Despite subsection (2), if 50% or more of the members of the committee are prevented from voting on the matter under subsection (1), a special general meeting of the society must be called to consider and determine the matter.

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