Document Actions

What if a society is not incorporated?

Up one level
A society does not have to be incorporated for its members to operate. Before you decide whether to incorporate or not, you should consider the following issues.

A society does not have to be incorporated for its members to operate.  Before you decide whether to incorporate or not, you should consider the following issues. 

  • An unincorporated society is based on an agreement (contract) between the members, that changes when people join or leave.  The society does not have an existence separate from its members.
  • Members of an unincorporated society can be held liable for the debts of the society. 
  • A society that is not incorporated cannot sue or be sued in Court.  Any Court action would either be taken by, or against, the members individually. 
  • An unincorporated society cannot own property or enter into contracts. 
  • If a society is not incorporated it is not required to have rules to govern it.  This can become a problem if there are disputes about how the society is run.
  • There are problems in gifting property (including money) to a society that is not incorporated.
  • A society that is not incorporated cannot use the word ‘Incorporated’ at the end of its name.

 

Last updated 23 December 2011

Resources

Learn about online services

Learn about the range of online services available to you.

 

FAQs

Check out our most frequently asked questions.

 

Send us your feedback via email.