MDCA Constitution and Incorporated Societies Act 2022 Overview

MDCA Constitution and The Incorporated Societies Act 2022

From the Incorporated Societies web page: Now that the new Act has been passed, regulations are being developed that will determine how your society will apply for reregistration. Once everything is in place, your society will have 2 years to reregister, from October 2023 to April 2026.

The Incorporated Societies Act 2022 From October 2023, once a society reregisters, it will have to start using External Reporting Board (XRB) accounting standards in its financial statements, unless it qualifies as a small society . Small society (i)in each of the 2 preceding accounting periods of the society, the total operating payments of the society are less than $50,000; and Members will need to consent to becoming a member of your society under the new Act (ii) as at the balance date of each of the 2 preceding accounting periods, the total current assets of the society are less than $50,000; The new law will make it mandatory to document your dispute resolution processes in your rules (constitution)

Constitution Builder https://isb.companiesoffice.govt.nz/constitutionbuilder/introductoryClauses/name

Objectives of the MDCA Objectives of the MDCA To initiate and organise actions that contribute towards making our Community a better place for both current and future generations: a) Promote and foster interest in the social, economic, environmental and cultural life of M pua and surrounding districts b) Encourage public discussion on the socially, economically and environmentally sustainable development of M pua and districts, commensurate with the preservation of its unique qualities and desired lifestyle of residents c) Serve as a channel of communication with local, regional and National Government, including the Tasman District Council (TDC) and any other statutory or interested organisations, in as much as they may affect those who live in the district d) Collect and disseminate information on matters pertaining to these objectives and any other matters of interest or concern to the community.

The new Act: Officers We will need a declaration signed by officers that they are not: I. Six broadly expressed duties modelled on directors duties in the Companies Act 1993 to Act in good faith and in the best interests of the society an undischarged bankrupt prohibited from being a director or promoter of a company disqualified from being an officer of a charitable entity convicted and sentenced for certain offending within the last 7 years (for example, a crime involving dishonesty) subject to particular orders (for example, a banning order) unable to comply with any qualifications for officers contained in the society s constitution. II. Exercise powers for proper purposes only III. Comply with the Act and the constitution IV. Exercise reasonable care and diligence V. Not create a substantial risk of serious loss to creditors VI. Not incur an obligation the officer doesn t reasonably believe the society can perform

Sub-committees RECOMMENDED The Committee may appoint sub-committees consisting of such persons (whether or not Members of the Society) and for such purposes as it thinks fit. Unless otherwise resolved by the Committee: I. the quorum of every sub-committee is half the members of the sub-committee but not less than 2, II. no sub-committee shall have power to co-opt additional members, III. a sub-committee must not commit the Society to any financial expenditure without express authority, and IV. a sub-committee must not further delegate any of its powers.

The issue of sub committees Their utility is to allow focused development of an organisation's positions/policy/plans on a given subject, utilising where appropriate, subject matter experts who may or may not be MDCA members The organisation s governors and representatives need to be commensurate with the sub committees work and needs to ensure that any organisation activity or publicity on the subject is consistent with both the organisation's goals and objective and other organisation activities.

Current rules Subcommittees Code of Conduct When an MDCA representative is speaking or sharing publically on behalf of MDCA, they must do so in keeping with approved/agreed MDCA agenda and/or position, communicate in a respectful and collaborative manner and strive for solution-based outcomes. Any personal views shared in the moment must be declared as such and at formal stakeholder meetings it may not be appropriate for individual Executive Members to share their personal viewpoint without prior consultation with the Executive Committee. a. The Executive may, from time to time, establish sub-committees to address specific community issues. b. b. Sub-committees will be responsible to an appointed Executive Committee Member.

Proposal Rewrite the constitution for the October 2023 starting time, covering the essential components in the new Act and consideration of the recommended components plus the matter of the sub committees.

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