Member-funded Societies
Under the Societies Act there are two kinds of societies: ordinary societies and member-funded societies. Member-funded societies exist primarily for the benefit of their members and have the following statement in their constitution: This society is a member-funded society. It is funded primarily by its members to carry on activities for the benefit of its members. On its liquidation or dissolution, this society may distribute its money and other property to its members. Compare the Two Kinds of Societies A member-funded society may, on its winding up, distribute its money and other property to its members, and is subject to fewer accountability measures than an ordinary society. Here are the differences: Compare the Two Kinds of Societies Member-funded societies Ordinary societies Distribution of assets on winding up No restrictions – assets could go to members Assets can only be distributed to certain entities (such as, non-member-funded societies, registered charitie...