Law changes to help building societies comply with their rules

Temporary legislation gives building societies relief from certain obligations in their rules that they may not be able to fulfil due to COVID-19.

COVID-19 Response (Requirements For Entities — Modifications and Exemptions) Act 2020 passed into law on 15 May 2020.

Allowing modifications to constitutions or rules

Entities, including building societies, are able to make certain modifications to their constitutions or rules if a majority of their governing officers believe, in good faith, that it’s not reasonably practicable to comply with those provisions as a result of COVID-19. This includes provisions for calling or holding meetings, rules relating to dispute resolution or waiving, suspending, deferring or reducing fees payable by members.

If you decide to make use of this provision, there are certain things you need to do, including giving notice to the Registrar.

Read more about this law change and download the form you need to give notice of your modification to constitution or rules.

Enabling use of electronic means

Entities, including building societies, are able to make use of electronic means (including electronic voting and the use of electronic signatures) when their constitution or rules wouldn't normally permit this.

If you decide to make use of this provision, there are certain things you need to do, including giving notice to the Registrar.

Read more about this law change and download the form you need to give notice of your use of electronic means.