Personal liability , an urgent need for the club to change.


Geoff Kingston
 


"The Club shall be directed and its business transacted by the committee." that's what our club rules say and I am sure most of us are happy with that, now have a look at the link.


https://www.morton-fraser.com/insights/if-you-are-committee-member-are-you-personally-liable


This appears to be a Scottish case or at least the Solicitors are and one of the options mentioned the SCIO would not apply to the BOC, the option to move to a Company Limited by Grantee however is available to our club, there are plenty of similar cases to the one outlined above by Morton-Fraser reported in the rest of the UK and for the individuals concerned very sad, potentially devastating for them and their club and a warning to other clubs that have failed to address this risk.

There is simply no justifiable reason why and member of the committee or member of the BOC should be exposed to anything other than limited liability just because of the way the organisation is structured, this needs to change and change soon.

True members would have to vote for this and the management of the move to the new arrangements for the BOC would be in the hands of the committee but this is surely in everyone's interests especially if you have volunteered or are thinking of volunteering to help run the club, you don't want to find yourself in the position of Mr Davies and the rest of his committee colleagues. I failed recently to find another classic car cub that was not already operating as a Company Limited by Guarantee, some for very many years which illustrates clearly the rare and undesirable position we find ourselves in today.

Geoff.


Stefan Cembrowicz
 

Thanks v much for clarification , Geoff. Can I mention that, as we were very aware of these risks, the Bristol Owners Heritage Trust converted ourselves into a CIO a while back. Our Trustees'  liability is now limited to £1 each. Wasn't too difficult, thanks to astute advice from our paperwork wizards. 

Hope  that helps. 

all the best, Stefan 

 

 


Geoff Kingston
 

Thank Stefan, I know this is a Scottish case reported from a firm of Scottish Solicitors and the law does differ in different parts of the UK and Ireland and that precedents set in our courts may not always apply in different areas. However I did read a Scottish government report on this of a few years ago that stated the basic principles across the the whole of the UK are the same, as we both know it flows from two simple issues control and accountability and there is no way you can have one without the other in any club or organisation.

You have done some tremendous work over the years for the Bristol Cars community as have your fellow trustees and it would be totally wrong if you were not able to benefit from the protection of limited liability any more that it would be for any committee member, officer or member of the BOC who, could under the current arrangements, unexpectedly find themselves faced with personal financial liabilities just because they chose to help run an organisation for the benefit of themselves and other members. I won't hark back to what has set me on this trail other than to say the trigger were two statements, one in a club bulletin and the other in a club communication and the alarm bells have been ringing since.

The club might need your paperwork wizards!

Geoff.



------ Original Message ------
From: "Stefan Cembrowicz via groups.io" <stefan@...>
To: bocforum@groups.io
Sent: Monday, 19 Sep, 22 At 22:40
Subject: Re: [bocforum] Personal liability , an urgent need for the club to change.

Thanks v much for clarification , Geoff. Can I mention that, as we were very aware of these risks, the Bristol Owners Heritage Trust converted ourselves into a CIO a while back. Our Trustees' liability is now limited to £1 each. Wasn't too difficult, thanks to astute advice from our paperwork wizards.

Hope that helps.

all the best, Stefan