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Incorporated Societies Act 2022

Administration of societies - Indemnities or insurance for officers, members, or employees of society

94: Society restricted from indemnifying or effecting insurance for its own officers, members, and employees

You could also call this:

"A society can't pay to protect its officers, members, or employees if they do something wrong."

Illustration for Incorporated Societies Act 2022

You cannot be protected by a society for things you do wrong as an officer, member, or employee. This means the society cannot pay for your insurance or help you with costs if you are sued. The society is not allowed to do this, except in certain situations. If a society does try to protect you in this way, it will not be valid. The law explains what some words mean, like "effect insurance", which includes paying for insurance costs. It also explains that words like "employee" and "member" include people who used to be in those roles. You can find more information by looking at the relevant laws, such as sections 526 and 530. The society has to follow these rules to make sure everything is fair. This helps keep everyone safe and responsible.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS100980.

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95: Society may indemnify or effect insurance for person in their capacity as employee of third person, or

"A society can help pay costs if you make a mistake at work for someone else."

Part 3Administration of societies
Indemnities or insurance for officers, members, or employees of society

94Society restricted from indemnifying or effecting insurance for its own officers, members, and employees

  1. A society must not, except in accordance with this subpart, indemnify, or directly or indirectly effect insurance for, an officer, a member, or an employee of the society for—

  2. liability for any act or omission in their capacity as an officer, a member, or an employee of that society; or
    1. costs incurred by the officer, member, or employee of that society in defending or settling any claim or proceeding relating to that liability.

      1. An indemnity given in breach of this subpart is void.

      2. In this subpart,—

        effect insurance includes to pay, whether directly or indirectly, the costs of the insurance

          employee includes a former employee

            indemnify includes relieve, exempt, or excuse from liability, whether before or after the liability arises

              member includes a former member

                officer includes a former officer.

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