Incorporating Your Residents Association The following information is provided for the benefit of residents of villages within the Hampshire Property Group portfolio and explains Hampshire’s desire that residents es- tablish incorporated associations to control resident initiated activities and likewise ex- plains our request that such incorporated associations take out insurance cover. From the outset it should be noted that there is no requirement contained within the Res- idential Parks Act for residents to establish an incorporated association or that they take out insurance cover. Residents are generally free, within the confines of the Act, to deter- mine whether they wish to have a Residents Committee and or a Liaison Committee. Notwithstanding that the Residential Parks Act is silent on the need or desirability of es- tablishing an incorporated association of residents, it is in our view best practice and is therefore encouraged. It should be noted that the incorporation of a resident’s association does not restrict resi- dent’s ability to continue to have a separate Residents Committee or resident representa- tives on a Liaison Committee, if they wish. As a matter of practice, we would expect that residents will elect/ or their elected officers will appoint representatives to the Liaison Committee but that any functions of a Residents Committee would be undertaken by the elected Board of the incorporated Residents Association. There are a number of reasons why residents should incorporate a residents association under the Associations Incorporation Act 1981, rather than merely relying upon those provisions of the Residential Parks Act and Residential Parks Regulations governing the establishment and operation of a Residents Committee and or a Liaison Committee. Incorporation of an association establishes an organisation as a legal entity in its own right, separate from its individual members and its officers. Incorporation helps to: protect individual members and officers of the residents association from the debts and liabilities of the association; ensure that property purchased by residents for the use of village residents, continues to be available for use by residents despite subsequent changes to the association’s membership; and clarify the binding rules of the association, including mandating requirements for qual- ifying as a member, timing of regular resident meetings, the provision of access to information including minutes and financial accounts and the manner of periodical- ly electing a Board or leadership committee for the association. In our experience, unincorporated associations of residents often do not adequately ad- dress the ongoing rules of the association and the relationship of members and their committee. There is a great deal of uncertainty as to how unincorporated resident associ- ations should operate and significant question marks as to how property of the unincor- porated association Why should you incorporate a residents association?
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