Do I Need A Social Enterprise Constitution?

So, you want to start a social enterprise – that’s brilliant news! Social enterprises are a fantastic way to make a positive impact whilst also aiming to be profitable. 

You’ll need to consider your business structure, your objectives and your fundraising strategies. But of course, you can’t overlook one of the most crucial elements – your constitution. 

What Is A Social Enterprise Constitution?

A Social Enterprise Constitution is a governing document that outlines how your social enterprise is to be operated. It should detail the rights and responsibilities of individuals within the company – this could include members, directors and the company secretary. 

Essentially, it’s a document that contains specifics about the enterprise’s operations and its management. 

Do I Need A Social Enterprise Constitution?

Indeed – if you’re managing a social enterprise in New Zealand, you’ll require a constitution as this will govern your internal affairs. The aspects that need to be addressed in your rules will vary based on your business structure. 

Should you wish to amend your rules in the future, you’ll need to pass a special resolution at a general meeting, and you might incur certain fees to update details (but again, this is contingent on your structure). 

Can I Register As A Charity?

Yes, it’s feasible to register your social enterprise as a charity in New Zealand. However, your organisation must be not-for-profit. 

If you choose a charity structure, this means you’ll have to adhere to the relevant New Zealand legal requirements, such as:

• A charitable purpose
• Charities Services registration
• Fundraising
• Constitution (or a Charter)

Where Can I Get A Social Enterprise Constitution?

A constitution needs to be customised to the needs of the organisation. The matters included in the document will depend on your legal structure, the nature of your activities, members’ interests and the overarching purpose.

Therefore, it’s wise to consult with a lawyer who can draft a constitution in line with your specific requirements. 

At Sprintlaw, we offer a Social Enterprise Constitution package to simplify the process for you. It includes:

• A constitution tailored to your company’s social objectives
• Phone consultations with a Sprintlaw lawyer who can address your legal queries and guide you on the pertinent legal matters

Need Help?

Do you require a social enterprise constitution? Connect with our team today – we can assist in making your legal matters straightforward. 

If you would like a consultation on your options moving forward, you can reach us at 0800 002 184 or [email protected] for a free, no-obligations chat.

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