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unincorporated association is an organisation set up through an agreement between a group of people who come together for a reason other than to make a profit.
The advantage of an unincorporated
1. They are simple to set up, being founded by agreement between the members, no further steps such as registration are required.
2. Privacy – an unincorporated association does not have to file accounts and other information with Companies House or with the Registrar of Friendly Societies.3. Lower compliance costs
The disadvantages of an unincorporated club are:
1. The association does not have limited
liability, the officers and sometimes the members may be
held liable for the debts of the association and for the performance of the association ’s contracts and other obligations
2. It is not a body corporate and does not have a separate legal existence from its individual members, accordingly it can neither sue nor be sued other than through its officers and members.
3. It cannot hold land and investments other than in the name of officers or trustees.
4. No statutory liquidation
procedures exist and an unincorporated association cannot be voluntarily wound
up under the Insolvency Act.
5. The association cannot make formal contracts, any contract which has been entered into in the club’s name could be null and void.Formation
Like minded individuals put together a set of agreed rules for the management
and operation of the joint activity. That could be written on a simple document, but using a comprehensive document to do so is better as
it covers many things and protects those who make decisions from action
by those who do not.
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