There has been a lot of recent discussion in this place as to why clubs are Limited Companies, wiht all that being a Limited Company brings.
I found this reference:
Will You Take The Risk When you have read it ask yourself this question:
If I join an unincorporated club can I then afford to share the unlimited liability for the result of the stupid and or criminal actions of a couple of fellow members I don't even know?
Thought not.
But it isnt so simple as that Peter. Being unincorporated offers some protection as well. For example a member cannot sue an unincorprated club because in law he would be suing himself. So instead he has to sue an officer who is of course protected by insurance. Or the individual member who has done him wrong.
There has been a lot of chat about this subject amongst sailing clubs and the advice given by the RYAs own barrister is that there are as many advantages as disadvantages of being unincoporated and there is no legal reason for most clubs to change. Instead clubs need to make sure they are well covered by insurance.
If you do put on big public functions then it might well be a different issue - you might then want to limit liability. As for the criminal law its silly to suggest that every member of that club could be in jail for letting the oil out - the legal process is more sensible than that. Instead they prosecute the officers which is exactly what they would do if incorporated when the officers would be the directors.
