An Incorporated Society or Residents Society is a group or organisation that has been registered under the Incorporated Societies Act and is authorised by law to run its affairs. It is becoming more common in areas of larger subdivisions where there are common facilities or infrastructure and it is a requirement to share costs by members, e.g. roading or stormwater ponds.
An incorporated society will continue to exist as long as it files certain documents with the Registrar of Incorporated Societies or until its members, or a creditor, decide to bring the society to an end.
Each Society will have their own individual Constitution that advises of the rules and requirements, such as: – members’ obligations and restrictions, the process for handling internal disputes, requirement for financial audits, requirement to pay membership levy’s, Annual General Meetings, format of accounts, the reason for the need for the society, etc.
The Constitution and any associated covenants will affect all properties within the society, so it is important to consider these. They may include housekeeping or operational rules, ongoing contributions or costs and consent requirements owners need to be aware of.
Often Society’s will engage a professional management company to assist with administration and management of the above.