The concept of club v company. When does a Club become the Company.

TET

Well-known member
Now I realise this is for the Royal Yacht Asscociation

But its exactly the same principle with all clubs in UK.

A club usually starts off as an association club with members. It is not a legal person and cannot bind the club to any consideration by law, however the administration team of the club are liable for any legal mistakes done on behalf of the club. And they have no limited liability.

Therefore, if a club gets quite large and starts dealing with large liabilities then it might be prudent to turn the club into a company, so that if the club goes burst then the liability to the club is limited to the shareholding equity for the club and the creditors cannot come after the individual members of the club as would be the case if the club was still only an association club.

Now, if a club has become a company then it has become enshrined into law, becoming a legal person in its own right. This is usually reflected in the memorandum and articles of association of the new Company where it usually states the Club is the Company and vice versa. But this process has taken away the clubs ability to association club status since it now has a legal personality and is a profit pursuit entity rather than just an ordinary association club.

The company can take the form of private limited or public limited status depending on the size scope and aspirations of the club.

Now lets say the club racks up some dubious debts by scamming some entities and creditors then the administration team of the enshrined legal club/company have limited liability, which is the shareholder owned equity of the entity. There will be no personal wealth beyond shareholdings lost should the club get into murky contractual issues.

Also, as far as I can see, legally enshrined clubs have no legal mechanism to go back to being association clubs after say a liquidation event of the enshrined club/company.

That being the case, if a club went burst owing a lot of money and perhaps a fraudulent misrepresentation of their predicament before death had occurred to the detriment of other clubs who trusted their going concern status and obligations then perhaps they have committed the legal fraud. And if that club which effectively knew it was on deaths door tried to pull a fast one to excuse the stewards who ran that club into the ground from any kind of reprimand through even more skullduggery then perhaps there is case not only of gross misconduct but mass conspiracy to defraud society and escpecially the other clubs who take part in the activities that the club partook.

Even more sinister perhaps would be the the gross misrepresentation in the MSM if instead of revealing the true nature of the potential fraud and conspiracy that MSM actually pretended that the enshrined legal entity that had died was infact an association club rather than the legal person incorporated club.

Now thats all just conjecture of someone trying to fathom why Any club would allow another club to do exactly what I suggested above. It is possible that my understanding is not quite right. But that is my current undertstanding. And if I was a shareholder of a club who had been shafted by different club through allegatiuons of fraud and conspiracy then I would firstly be wanting my member club to pursue the truth dilligently and tenaciously. Not to get one over the shareholders and members of the shafted/shafter club but to prevent the culprits getting off scot-free and bringing justice to bear on a period of serious skullduggery.

The fact that a club committed suicide, shafted its own members, shafted its own shareholders, shafted all other clubs, shafted the government, shafted all its business partners and nobody seems to be pursuing the people who did very nicely out of said skullduggery but then a new club now claims its the same club who shafted everybody and everybody who got shafted was in vain and the those who did the shafting get to keep theier large asset gains passing some dubiously won titles along with all their legacy titles to this new scot-free club while claiming lets move on.

Now if somebody can enlighten me to why the above is not worth pursuing at the appropriate legal court then I would love to hear why that would be the case.

I was deeply saddened at the last AGM of Celtic where the Res 12 issue was once again punted deep into the rough with little or no explanation as to WTF is going on and why.

Im also a little annoyed that the people chasing down this issue let it off the leash so tamely and easily.

The silence of the board on so many issues offends me.
But the issues around this Res 12 fiasco and the silence is far too much for my understanding.
The silence has dumbfounded me.

Now I realise this link is for a different set of clubs. But Im pretty certain that its exactly the same framework for all association clubs and their ability to become a legal person and entity in its own right. Im hoping some people who understand these things better than me can relate their opinions of my above thoughts.

Kind regards

Tet

https://www.rya.org.uk/SiteCollectionDocuments/Club_Zone/06_Club_Mangement/02_Legal_structure_of_your_club/LEGAL STRUCTURE OF YOUR CLUB.pdf
 
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Aye Ready...........to fleece the gullibillies.
Big day the morro the AGM and a debt mysteriously made to look like it has been paid, by whom surely has to be the question could not be davies money he needs his for Thursday, the sevco diary always fully booked.
 
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