Constitutional

Re-registering as a Registered Society

Social clubs are registered under either the Co-operative and Community Benefit Societies Act 2014 or the Friendly Society Act of 1974. Some clubs particularly sport and rugby clubs are often unregistered. As most institutions registered under the Friendly Societies Act are either insurance or building societies, the requirements of the Act are onerous. Accordingly provision has been made for clubs to de-register and re-register under the Co-operative and Community Benefit Societies Act 2014. The advantages of re-registering are:-

• The club is given ‘Limited corporate status; the club will no longer need to have trustees.
• The requirement of the Co-operative and Community Benefit Societies Act 2014 in such matters as accounting records and systems of business control is more suited to social and sporting clubs.
• Relief is given for bank or other loan interest when calculating the club’s corporation tax liability. A club registered under the Friendly Society Act is not able to claim loan interest relief.
• Under the Co-operative and Community Benefit Societies Act 2014 there are no trustees.
  There may be adverse consequences of re-registration for example; there may be an impact on rates relief.

There are five stages to follow to re-register:
1. Members consent to the proposal.
2. Drawing up of rules under the Co-operative and Community Benefit Societies Act 2014.
3. Completion of the application form.
4. Registration of the application.
5. Transfer of all property and documents held by the former trustees.

Where a club is unregistered it will not be recognised as a separate legal entity and would not be able to benefit from the advantage of registration. For example, a registered club is able to sue and be sued in its own name. Where a club is unregistered any liabilities incurred are the responsibility of all the members in equal shares.
Further details on re-registration are given in guidance note issued by the Financial Conduct Authority.