Constitutional

Limited Liability Registered Societies formally Industrial and Provident Societies Unincorporated Associations – Advantages & Disadvantage Unincorporated Associations – Liability of Members, Officers and Trustees Re-registering as a Registered Society Change of Name

Unincorporated Associations – Advantages & Disadvantage

Advantages

The advantages of an unincorporated club include:

  1. Simplicity – an unincorporated association can be established by agreement between members, with no formal registration requirements.
  2. Privacy – there is no obligation to file accounts or other information with Companies House or the Financial Conduct Authority.
  3. Practical operation – brewers, banks and other suppliers are generally willing to deal with the club’s officers for day-to-day matters.
  4. Lower compliance costs – fewer statutory and regulatory obligations apply.

Disadvantages

The disadvantages of an unincorporated club include:

  1. Unlimited liability – the club does not benefit from limited liability. Officers, and in some cases members, may be personally liable for the club’s debts, contracts and other obligations (see the section on liability of members, officers and trustees).
  2. No separate legal personality – the club is not a body corporate and has no legal existence separate from its members. It cannot sue or be sued in its own name.
  3. Property ownership – land and investments cannot be held in the club’s name and must instead be held by officers or trustees.
  4. No statutory winding-up procedures – an unincorporated club cannot be voluntarily wound up under the Insolvency Act 1986.
  5. Contractual limitations – contracts entered into in the club’s name may expose officers or members to personal liability and may be difficult to enforce.