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Incorporated Societies Act 2022

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

96: Permitted indemnities for certain liabilities or costs

You could also call this:

"When you make a mistake, your society can help protect you from costs or liability"

Illustration for Incorporated Societies Act 2022

You can be protected by your society if you do something wrong as an officer, member, or employee. This protection is for when you are liable to someone outside the society for something you did or did not do. You can also be protected for costs you incur when defending or settling a claim. You are not protected if you did something criminal or failed to act in the best interests of the society. You can be protected for costs if you are taken to court and you win or the case is stopped. This is also the case if the proceeding is discontinued. Your society's protection is subject to section 98. You can also be protected for costs related to a proceeding about a certain kind of liability, as mentioned in section 94(1)(a). This means you can get help with costs if you are found not liable.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS100981.

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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."

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97: Permitted insurance for certain liability or costs, or

"Insurance to cover costs if you're liable as a society member or employee"

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

96Permitted indemnities for certain liabilities or costs

  1. A society may indemnify an officer, a member, or an employee of the society for—

  2. liability to any person other than the society for any act or omission in their capacity as an officer, a member, or an employee of that society (not being a liability specified in subsection (2)); or
    1. costs incurred by the officer, member, or employee in defending or settling any claim or proceeding relating to that liability.

      1. The liability specified in this subsection is—

      2. criminal liability; or
        1. a liability that arises out of a failure to act in good faith and in what the officer, member, or employee believes to be the best interests of the society when acting in their capacity as an officer, a member, or an employee of the society.

          1. A society may indemnify an officer, a member, or an employee of the society for any costs incurred by them in defending or settling a proceeding that relates to liability of a kind referred to in section 94(1)(a) if—

          2. judgment is given in their favour or if they are acquitted; or
            1. the proceeding is discontinued.

              1. This section is subject to section 98.

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