The Management Committee of Dovey Yacht
Club are considering a change of status from an unincorporated Club to a
company limited by guarantee.
Unincorporated clubs are not, in law,
considered to have their own legal identity thus the club cannot own property,
enter into contracts or employ staff in its own name.
Anyone suing an unincorporated club in
relation to such matters must do so in the name of representative individuals
and this usually means the officers, committee members or trustees.
In addition, the individual members of an
unincorporated club can be held personally liable to meet the debts of the
club. Such debts may arise out of contractual disputes and employment disputes,
or even personal injury claims if for some reason the club’s insurance
provision is inadequate.
For more information on an unincorporated
club’s potential exposure to liability please see the RYAs Guidance on Unincorporated
Club Liability http://www.rya.org.uk/clubs/support/management/constitution/Pages/legalstructureofyourclub.aspx
Incorporation of a club does not, however,
protect individuals within the club who might owe a personal duty of care
towards others, such as that owed by an instructor towards their students (you
can find examples of other types of relationships that may possibly give rise
to a duty of care in a club context in the RYA’s Race Training and Event
Management Guidance - http://www.rya.org.uk/clubs/support/management/healthandsafety/Pages/organisingandmanagingevents.aspx ). It therefore remains vital that an
incorporated club procures appropriate insurance to cover its various
Property owning clubs: If an unincorporated club owns its own
property, be it freehold or leasehold land, it has to find trustees who are
prepared to hold the club’s property in their name and some clubs are finding
this increasingly difficult. Each time a trustee retires or dies the property
must be transferred to new trustees. This can prove to be time consuming and expensive particularly
where club owned land is registered with HM Land Registry.
If the club has a lease it
is the trustees who hold the lease and who will be liable to pay the rent, although
they will usually be indemnified from the club’s assets.
Dovey Yacht Club Trustees.
Dovey Yacht Club
currently has three Trustees; Searson Thompson, David
Tildsley and David
Benbow. They hold the lease of Dovey Yacht Club on behalf
of all club
members. All three have given many years of devoted service to
the club and it is
intended that once incorporated the lease will be held in the name of the
incorporated club. An application will need to be made to Gywnedd Council as
lessors for consent. Fashion replica bags on sale online. As soon as the lease is transferred the trustees will be
able to retire and be relieved of any further liability.
All have agreed that a change is appropriate.
Clubs with Employees:
Clubs that employ staff
must do so in the name of individuals, who may be exposed to potential
liability if there is an employee dispute resulting in a Tribunal Award.
The Major Benefits of
_The club will be able to hold property, enter into contracts and employ staff
in its own name;
_As an incorporated company it is considered in law to have its own legal
identity.It can sue and be sued in its
„h _Members’ personal
liability for the debts of the club will be limited to their guarantee of £10
Extra Ordinary General Meeting
It is anticipated that
within the next month each full member of the Club will receive by email
details of the proposals that are in the course of preparation with a view to those
proposals being presented to an Extra Ordinary General meeting of the Club to
be held before the Annual General Meeting on the 31st July.Formal notification of this meeting will be
sent to all members in accordance with the constitution of the Club.
The Club Committee
have established a sub-committee to see this matter through.The members of that Committee are
Bob Usher Commodore
Steve Lister Treasurer