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FAQs - Key Differences - Body Corporate and Incorporated Society
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Body Corporate |
Incorporated Society (Society) |
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Governed by the Unit Titles Act 2010 and |
Governed by the Incorporated Societies Act 1908 and the Constitution prepared for the Society |
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Unit Titles Act 2010 and Regulations 2011 can only be amended by Government |
Constitutions can be amended by Owners |
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Insuring all buildings and infrastructure is mandatory |
Building insurance is often individual Owner responsibility, however, can be included as a Society obligation if dictated in the Constitution |
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Levies are raised based on UI / OI according to UTA |
Levies are generally split equally by all units however some exceptions are made and will be noted within the Constitution |
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AGM is required within a specific timeframe |
No timeframe unless specified in the Constitution. |
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Body Corporates have the power to enter a private unit for repairs and maintenance purposes |
A Society would not have authority to enter into a private unit unless specified in the Constitution. (we recommend that this be confirmed by a lawyer) |
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Long Term Maintenance Plan is mandatory |
No Long Term Maintenance Plan required |
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Health & Safety Plan/Hazard Register is mandatory under the Health & Safety at Work Act |
No Health & Safety Plan/Hazard Register required |
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Large focus on the maintenance of all building elements and common property |
Obligations are only as described within the Constitution. For example, some Societies are only responsible for maintaining a driveway |
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Financial Accounts approved at Annual General Meetings must be audited unless the Body Corporate agrees not to by Special Resolution (requiring 75% |
Financial Accounts approved at Annual General Meetings must be lodged with the Companies Office |
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Pre Contract Disclosure Statements and Pre Settlement Disclosure Statements are mandatory for a vendor to provide to purchasers when selling a unit |
Most Societies require the vendor to have the purchaser complete a Deed of Covenant and forward it to the Society |
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Unable to dissolve a Body Corporate |
Able to dissolve an Incorporated Society |
Similarities
- Operates for the benefit of all Owners and Residents / the Community
- Annual General Meetings are held, budgets are prepared and approved, levies are raised, and financial accounts are maintained
- Outside of a General Meeting, decisions are made by an elected Committee made up of Owners who are delegated the powers of the entity to act on behalf of all Owners.
- Rules/Constitutions can only be amended at a General Meeting.
