ITPNZ faces liquidation as debts mount & membership declines

The Information Technology Professionals New Zealand (ITPNZ) Board has announced a proposal to enter liquidation after identifying considerable historic debts and obligations that the organisation cannot meet.

The Board has stated that it is in the process of finalising the financial information and will release details to members in the coming days. Members are being asked not to pay membership renewals, though outstanding invoices for events or services should still be paid as these form part of the organisation's accounts for liquidation.

A Special General Meeting (SGM) has been scheduled for 23 October, at which fully paid-up members will be able to vote on whether to proceed with the liquidation. The Board is recommending a "yes" vote, stating that this path represents the best outcome for members and the wider professional community.

Debts and obligations

According to the Board, the decision to propose closure followed a recent review of the accounts, which revealed that ITPNZ had been carrying debts that made it appear solvent on paper, but in reality, many of these debts were not being paid and became unrecoverable over time.

The full scale of the problem became apparent in the past two weeks, and the expiry of the British Computer Society (BCS) CITP licence further compounded the organisation's difficulties, as ITPNZ could no longer meet the requirements and financial obligations of this licence.

"The full scale of the debts, the expiry of the BCS CITP licence, and the wider pressures facing membership organisations mean that ITP is no longer sustainable in its current form."

The Board also outlined the broader challenges facing membership organisations, including declining engagement, rising costs, and economic difficulties. It stated, "A cash injection or one-off bailout would not have fixed these underlying problems."

The member vote

ITPNZ's constitution stipulates that a decision to liquidate can only be made following a vote of the membership. The upcoming SGM will therefore determine whether ITPNZ moves into liquidation, and the Board has highlighted the importance of this vote for members' future professional recognition and the management of remaining certifications.

The Board explained the implications of each voting outcome. A "yes" vote would allow the community to "move quickly to secure a new home for certifications and professional recognition", ensure that debts are dealt with transparently, protect the reputation of members, and provide closure on past issues. Conversely, a "no" vote would leave the organisation in a state of uncertainty and place more at risk.

"Your vote at the upcoming Special General Meeting will decide whether we can draw a clean line under this chapter and move forward to secure a new home for professional recognition in New Zealand."

Financial and certification details

The Board has committed to sharing the most recent financial accounts once legal advice has been obtained. It noted that not all years have audited accounts, due to a sector-wide shortage of auditors, and some filings have been missed or are incomplete for similar reasons. The Board is working to compile as much information as possible for release prior to the SGM, while full lists of debts and creditors will be released by the appointed liquidator.

Members are being advised not to pay further renewal fees, as these can no longer be processed and refunds are not possible under liquidation law. Certifications and post-nominals such as CITPNZ, CTech, and HFITP will continue to be part of members' professional records, but the ability to renew or administer them will cease once ITPNZ closes. The Board said it is working to "identify a new home for members and associated programmes."

The separate CITP licence with BCS has expired, and current holders will retain their designation until their next renewal, after which they must transfer directly to BCS to maintain their status. Free transfers to BCS are available, but all new or pending CITP applications through ITPNZ are closed.

Board recommendations and outlook

The Board reiterated that it had examined various options including fundraising, government support, and increased member contributions, but concluded that the problems were too significant for these to offer a solution. The Board noted:

"The debts are significant and built up over many years. Even if we raised more revenue through fees or new initiatives, the underlying operating model is unsustainable. Membership organisations across industries are under pressure from declining engagement, rising costs, and tough economic conditions. A temporary cash injection would only delay closure, not prevent it. That is why the Board's focus is on securing a new, sustainable home for members and certifications, rather than trying to prop up a model that no longer works."

Should the vote pass, ITPNZ's main asset, Escrow, will likely be sold as part of the liquidation process. The Board has stated that members are not personally liable for the organisation's debts, and all obligations end with their membership. The Board has asked that members be patient and constructive as the volunteer Board manages the process.

The Board concluded that its immediate priorities are to manage the closure "with integrity and transparency" and to secure a new, sustainable arrangement for members and professional recognition in New Zealand.