Incorporated Societies have until 5 April 2026 to reregister under the new Act. According to MBIE, only 30% have reregistered, leaving the majority with one AGM to get this done. There are very real banking implications for these changes.
Don’t overlook banking implications
Update your bank early if you’re changing officers or bank account access. More complex changes, like consolidating societies or creating new entities, have bigger banking implications. New accounts may be needed, and facilities like rental bonds or credit arrangements may require reapplication under new entity names, which takes time to process and coordinate.
Changes to officers only
If you are adding or removing officers, you will need to add or delete bank account signatories. You will need to contact your bank and provide the updated names and addresses of those you want added. These people may then need to be identified, forms sent or a visit to a branch required. Remember to update your internet banking access at the same time.
Consolidating
Many Incorporated Societies are using this change to consolidate the number of societies to reduce operational expense and create simplicity. Engage early with your bank to understand the specific impacts on your existing facilities, which may include account and internet banking access, business credit cards, merchant facilities such as EFTPOS terminals or ecommerce, and lending facilities.
Creating new entities
Some Incorporated Societies may choose to change to being a charitable trust, partnership, or company. This will require new bank accounts, account access and other facilities to be set up. It could mean terminating all old contracts and setting up new facilities e.g. lease bonds, lending, business credit cards, merchant facilities, and lending facilities
How to engage with your bank
The more complex the changes, the earlier you should engage with your bank. The best way to do so is to write down your current banking set up and what you want changed. Consider what are the new entities, how do you see them operating and what are the additional facilities you require. You will need to tell your bank who you want to access the account, so write down their full names and addresses written to speed up the process. If your organisation is large and you have a relationship manager – work with them, they will review and let you know what they will need and how the transition could work. If your organisation is smaller, reach out via the bank’s website, online banking or 0800 numbers so they can find the right person to help.
What will happen if you don’t reregister
Missing the deadline to reregister has real consequences. IRD numbers will no longer apply, liability issues can arise, and banking arrangements will be affected. The Incorporated Society will lose its legal status as an Incorporated society.
The process might feel daunting, but engaging with your bank early to understand requirements will make the transition much smoother.
By Rachel Woodhouse
Senior Partner Not-for-Profit
Bank of New Zealand
