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Incorporated Societies Act 2022

Administration of societies - Other administration matters - Name of society

121: Use of society name

You could also call this:

"Always use your society's correct name in important documents"

Illustration for Incorporated Societies Act 2022

You need to clearly state your society's name in every document that creates a legal obligation. If your society's name is incorrect in a document, the person who issued it may be liable. They can avoid this if they prove the other party knew the obligation was with the society, or if the court decides it is not fair. You must follow this rule or your society may commit an offence and face a fine of up to $5,000. This rule is similar to one in the 1993 legislation. You should check the details of this rule to understand how it applies to your society.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS154490.

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Part 3Administration of societies
Other administration matters: Name of society

121Use of society name

  1. A society must ensure that its name is clearly stated in every document issued or signed by, or on behalf of, the society that evidences or creates a legal obligation of the society.

  2. If a document that evidences or creates a legal obligation of a society is issued or signed by or on behalf of the society and the name of the society is incorrectly stated in the document, every person who issued or signed the document is liable to the same extent as the society if the society fails to discharge the obligation unless—

  3. the person who issued or signed the document proves that the person in whose favour the obligation was incurred was aware at the time the document was issued or signed that the obligation was incurred by the society; or
    1. the court is satisfied that it would not be just and equitable for the person who issued or signed the document to be so liable.

      1. A society that fails to comply with subsection (1) commits an offence and is liable on conviction to a fine not exceeding $5,000.

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