We get an increasing number of calls from coaches and volunteers who are concerned that they may be personally liable if their club is unable to pay its bills.
The most recent case in the news has been Ynysybwl Rugby Club, where the club has been ordered to pay compensation of over £85,000 for constructive dismissal of its stewards. The club does not have the funds to pay the compensation and the stewards have now taken a legal charge over the treasurer’s house.
Committee members should be very clear – you ARE potentially personally liable if your club cannot pay its bills and where the club is not a corporate body (i.e. not a limited company or an Industrial an Provident Society). Liability is joint and several – the person or persons owed the money can take one or more of the committee members to court for the full amount owed.
Form a limited company (there is a choice of types of corporate body to select from, usually by guarantee or an Industrial and Provident Society) OR ensure that any form of contractual arrangement the club has will not cause the club to owe more money than it has in the bank. Please contact us for further advice and support.