Updating the rules

Each association must update its rules to include the new Schedule 1 matters and ensure that the rules comply with the requirements of the new Act by 1 July 2019.

During the three year transition period, the association’s committee has the power to make any necessary alterations to the rules so they comply with the Act without requiring members to pass the changes by special resolution at a general meeting. 

If the association has taken the opportunity to complete a broader review of its rules and is making additional changes (i.e. more than what is necessary to ensure the rules are consistent with the new law requirements), it will be necessary to pass these changes by Special Resolution at a general meeting of members.

Below are some examples of rule alterations and how they may be approved. If there is any uncertainty as to which method should be used, it is recommended that the proposal be put to members and passed by Special Resolution at a general meeting.

Type of change

Can the committee make the change?

Adding a new clause showing the association’s financial year

Yes

Updating section numbers of the Act referred to in the rules

Yes

Adopting the new prescribed model rules

No – Special resolution only

Changing the name or objects

No – Special resolution only

Changing an existing quorum already provided for in the rules

No – Special resolution only

Reducing the percentage of members who need to sign a request for a general meeting to be called from 50% to 20%.

Yes

 

A step by step guide

The step by step guide below will help make reviewing the rules easier to complete.

More in depth information about these steps is available in Associations Transition Pack 3.

  1. Use the change of rules checklist to review the existing rules to identify what changes will be required.
  2. Decide whether the association will adopt the prescribed model rules or update the existing document.
  3. When the committee is satisfied the updated rules include all of the Schedule 1 requirements and meet the requirements of the new law it’s time to call to vote on the proposed document. See Altering the rules for more information about calling the meeting.
  4. Lodge the updated rules with Consumer Protection within 28 days after the meeting has been held. The change of rules can be lodged using AssociationsOnline.

There is a step by step video available if you need help using the system.

  1. Once Consumer Protection accepts the change of rules the association can start using the new rules.