General Category > General Discussion
Clubs restarting?
Bill21:
We have equipment stored at our venue which needs to be covered by insurance. If it wasn’t for that I would suggest declining to renew the insurance until such time as the club restarts.
If clubs do restart without having the covid issue resolved I wonder how many will want to continue as committee members if it leaves them open to possible compensation claims?
David Buskell:
Bill21's comment about volunteers for the committee does bring back to mind the discussion about creating your club as a Company Limited by Guarantee. Members liability is limited to £1 not unlimited as in the present situation. A few clubs have gone down this route in the past but I would suggest it might not be a bad idea to look at this option again. I certainly will be encouraging my club to do so.
Bill21:
Thanks for that David, food for thought. ;) Thank you for mentioning it.
Paul Hannaby:
There are several things to take into consideration and also worth bearing in mind is that by becoming a company, it must have directors and the directors then have legal responsibilities and liabilities that didn't apply to an association...
David Buskell:
As Paul says, there are many things to consider if you wish to go down the Company limited by Guarantee route. Choosing the initial members and Directors being one of them.
You would have to prepare accounts and file them at Companies House. This means an annual expense. Against that, the individual members of your club are not exposed to unlimited liability as they are now.
Creating the company is not a major expense, but you would have to have a new constitution. Check out West Midlands Woodturners who have already gone down the Ltd by Guarantee route.
BTW Paul should be able to help any club considering this as on 9th July 2012, the AWGB was registered as a Company limited by Guarantee.The constitution run to 55 pages so it is not a quick read!
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