The full legal name for the NZRU is the New Zealand Rugby Union Incorporated. As this name suggests, the NZRU is an incorporated society, which has important consequences for the way it operates.
The NZRU is governed by the Incorporated Societies Act 1908.
An incorporated society must:
- have at least 15 members
- produce a set of rules that governs its own activities
The NZRU:
- has 26 members (New Zealand’s 26 Provincial Unions)
- is governed by the NZRU Constitution
Unlike a private company, governed by the Companies Act 1993, the NZRU is not allowed to make profits and distribute these to its members (the Provincial Unions). While the NZRU does make money and distribute this to its members, these distributions must only be for achieving the goals of the NZRU Constitution. These goals include promoting and developing rugby locally and globally, organising matches, and managing New Zealand’s national teams.
An incorporated society is independent from any of its members. The NZRU’s members are not liable for its contracts or obligations, and the NZRU will continue even if the membership changes.