Industrial and provident soceities

Industrial and provident societies

An industrial and provident society may be established under the Industrial and Provident Societies Act 1908 (the Act) on application to the Registrar of Industrial and Provident Societies by seven members and the secretary for carrying on any industry, business or trade authorised by its rules (except banking).  The primary purpose of the society should not be for the profit of its members.

Features of an industrial and provident society

Certain features of an industrial and provident society are similar to those of other bodies corporate, including:

• a society becomes a separate legal entity once incorporated

• a society will have a common seal (no longer applicable to companies).

An industrial and provident society will usually consist of the owners of small businesses who, while continuing to operate independently, become part of this larger entity for mutual benefit.  They work (industrial) and receive benefits (provident) from the society for their future well-being.

A co-operative taxi society is a good example with independent operators benefitting from arrangements that can be negotiated from a more favourable bargaining position due to the number of members in the society, such as car insurance schemes and a radio booking system. 

Societies are identifiable by having names ending in "Society Limited", sometimes "Co-operative Society Limited", and operate according to registered rules.

There are approximately 300 societies currently registered in New Zealand.