October 19

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?

Made with FlippingBook - professional solution for displaying marketing and sales documents online