An incorporated society differs with a body corporate in the legal requirements and the obligations of each member. An incorporated society must file annual returns and hold Annual General Meetings etc. Members must contribute to the maintenance and upkeep of communal areas in the society but are solely responsible for the maintenance and upkeep of their own property. 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 is a requirement to share costs, usually for maintenance of common or facilities shared by all members. 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 year end audit, requirement to pay membership levy's, Annual General Meetings, format of all accounts, the reason for the need for the society, etc. Often the requirement for this type of authority is to maintain common infrastructure, examples are: - parks, roading, stormwater and sewerage treatment systems, covenants on the type of buildings allowed to be built under Resource Consent RC conditions, Compliance to Resource Consent conditions, etc. It is important that you read the Constitution for any Society that you may be looking to buy into or have bought into, to see the reason for the Society and the potential ongoing costs to you. The other members have no requirement to contribute to your own private Lot and vice versa.
Interested in pursuing a purpose or cause that benefits the community? The type of vehicle you use is critical in ensuring your efforts are effective and that any assets you hold are protected. Charitable Trusts and Incorporated Societies are two common vehicles used in New Zealand that often cause much confusion. We provide a short summary outlining the benefits and drawbacks of each option below:. There are some stories of members ousting officers but in our experience this would be very rare.
What is an incorporated society?
It pays to think about this carefully as it will affect a number of aspects of your charity. Is this an easy or straightforward decision? The short answer is no!
An Incorporated Society is a group of people usually with a common interest sports club, social club, cultural group, service or activist group that is registered in accordance with the Incorporated Societies Ordinance Once registered, the Incorporated Society is required to provide the following information annually to the Registrar:. In accordance with section 22 3 of the Incorporated Societies Ordinance , if an incorporated society does not file its Audited financial statements to the Registrar when they are due, every officer of the society is liable to a monetary fine for every day during which the default continues. From 1st June , all incorporated societies must apply for renewal of their registration on or before 30 June each year. This will require the filing of an approved form for renewal, submission of the audited annual financial statements and the payment of an approved fee.