RFCCBS 3.1 Effect of registration

1This chapter covers the effect of registration, registration requirements, details of the application process and our approach to society names.

1The main benefits of registering as a society under the Act include:

1. (1)

   Corporate body status

   1. (a)

      The society is a legal person. It can act, hold property, sue and be sued in its own name.

   2. (b)

      It has ‘perpetual succession’. This means a society continues to exist even if its membership changes, unless it stops being registered.

2. (2)

   Limited liability

   1. (a)

      Members are only personally liable for the share capital they hold in the society and the amount of any share capital they have not yet paid for.

   2. (b)

      Anyone can check that the society is a registered society under the Act and see any other information we receive from the society under the Act by searching the public register we keep.

   3. (c)

      Members are not liable for any debts, contracts and other liabilities the society has taken on.

   4. (d)

      The officers of the society can be prosecuted if they breach their duties under the Act.

3. (3)

   Other effects of registration

   1. (a)

      The rules of a society are binding between the society and its members.

   2. (b)

      The society’s board can make, change or end contracts on behalf of the society.

   3. (c)

      The society can recover debts that members owe it in court.

   4. (d)

      If a member owes the society any money then the society can set the value of a member’s shares against their debt.