Many South African stokvels and burial societies are older than the smartphones their members now use to pay contributions. Their constitutions were written for cash collected at monthly meetings, a treasurer with a notebook and a single bank book.
The scheme has changed. Often the constitution has not.
If you are starting from nothing, use our plain-language rules template. This guide is for groups that already have a constitution and need to check whether it still fits how they actually operate.
Signs Your Constitution Needs A Review
Start a review if any of these are true:
- Members regularly say, "The constitution doesn't say anything about that."
- The group makes decisions by WhatsApp, but the constitution only mentions physical meetings.
- The bank asked for a document the constitution does not provide, such as a resolution format.
- The scheme now invests money, not only saves it.
- Office-bearers named in the constitution have left.
- Nobody is sure which version is current.
Step 1: Find The Current Version
Before reviewing, establish what the rules actually are. Collect:
- the original adopted constitution;
- every amendment, with the minutes or resolution that adopted it; and
- the version the bank holds on file.
If these differ, record the differences. The first decision of the review may be to adopt one consolidated, dated version that includes all valid amendments.
Step 2: Check The Gaps That Older Constitutions Miss
Work through each area below and note what the constitution says, what the scheme actually does, and whether the two match.
Remote Meetings And Electronic Decisions
- Does it allow meetings by video call or phone?
- Does it allow written or electronic resolutions between meetings?
- How is notice given: post, SMS, email, WhatsApp?
- How is quorum counted when members join remotely?
Our guide to recording WhatsApp decisions explains how to run an electronic vote once the constitution allows one.
Digital Payments And References
- Does it require contributions by bank transfer, or still assume cash?
- Does it set a payment reference format?
- Does it explain what happens to unidentified deposits?
Authority Over Money
- Who may sign or approve payments, and does that match the current bank mandate?
- Are there amount thresholds for committee or member approval?
- Is there a rule that preparation and approval are done by different people?
Compare this section with our payout approval controls.
Investment Powers
If the scheme invests, the constitution should state:
- what kinds of investment are allowed and not allowed;
- who may decide on an investment, and at what threshold;
- whether the scheme may borrow or give security; and
- how investment value is reported to members.
A savings stokvel that starts buying unit trusts without changing its rules is acting outside what members originally agreed to. See our guide on where a stokvel can invest.
Conflicts Of Interest
- Must office-bearers declare personal interests in a decision?
- Must they step out of the vote?
- Is there a rule about paying members or their relatives for services?
Records And Personal Information
- Who keeps the records, and where?
- How long are they kept?
- Who may see members' ID numbers, bank details and beneficiary information?
- What happens to records when an office-bearer leaves?
POPIA applies to the personal information the scheme holds. The Information Regulator publishes guidance.
Death, Incapacity And Beneficiaries
- What happens to a member's interest when they die?
- Can members nominate a beneficiary, and how is the nomination recorded?
- What evidence does the scheme need before paying an estate or beneficiary?
Dissolution
Many older constitutions say nothing about ending the scheme. They should cover:
- who may decide to dissolve the scheme, and by what vote;
- how assets are realised and liabilities settled; and
- how the remaining money is divided among members.
Tax
If the scheme earns interest or investment income, check whether its rules and records allow it to meet its obligations. Our stokvel tax guide explains what to check with SARS.
Step 3: Test The Rules Against Real Events
A practical way to find gaps is to replay the last two or three difficult situations the scheme faced:
- a member who missed several contributions;
- a member who died or left;
- a disagreement over a payout; or
- a change of treasurer.
For each, ask: Did the constitution tell us what to do? Did we follow it? If not, was the rule unclear, missing or unworkable?
Write the answers down. They show where the amendments matter most.
Step 4: Draft Amendments In Plain Language
Keep each amendment separate and specific, so members can vote on them individually. For each, state:
- the clause being replaced or added;
- the new wording;
- the reason for the change; and
- the effective date.
Avoid copying long legal clauses from other organisations that members will not understand. A rule that members cannot explain will not be applied consistently.
For changes involving property, investments, borrowing or funeral benefits, obtain professional advice on the wording.
Step 5: Include Transitional Provisions
New rules should not punish members for something that was allowed when it happened. A transitional provision explains how open matters are handled, for example:
The new late-payment rule applies to contributions due from 1 November 2026. Arrears that existed before that date are handled under the previous rule.
Step 6: Adopt The Changes Properly
Follow the amendment clause in the current constitution:
- Circulate the proposed amendments with the required notice.
- Hold the meeting or vote with the required quorum.
- Record the votes for each amendment in the minutes.
- Consolidate the adopted changes into a new dated version.
- Have the new version signed as the constitution requires.
Step 7: Update Everyone Who Relies On It
After adoption:
- give every member a copy of the new version;
- send the bank the documents it requires and update the mandate if signatories or authority changed;
- archive the old version with a note of when it stopped applying; and
- update any onboarding pack given to new members.
Schedule a light review before each annual general meeting, so the constitution keeps pace with how the scheme actually operates.
Authoritative References
- Information Regulator: POPIA
- Financial Intelligence Centre: Compliance and supervision
- South African Revenue Service
This article provides general governance information, not legal or tax advice. Obtain advice on amendments that affect investments, property, borrowing or funeral benefits.