Club lease

[uncertainplume]

Hello,
This is probably more orientated to clubs: due to a refurbishment project, my club (BSAC) is required to renew its lease with our landlord (borough in London). We have been given grief by the borough as they now stipulate that our club is not a legal entity and as such cannot enter into a contract. This might be well true but so will it be for every clubs in the country. So how have you folks managed to go pass this?
Cheers!

[Adrian]

Hello,
This is probably more orientated to clubs: due to a refurbishment project, my club (BSAC) is required to renew its lease with our landlord (borough in London). We have been given grief by the borough as they now stipulate that our club is not a legal entity and as such cannot enter into a contract. This might be well true but so will it be for every clubs in the country. So how have you folks managed to go pass this?
Cheers!

Yes, unincorporated clubs are not legal entities. It is getting harder to operate like this, new bank accounts for example, on line banking with two signatures is well nigh on impossible.

We are unincorporated, but are part of a 4 club association that is also currently unincorporated (changes are afoot to cope with possible redevelopment). Each club has a trustee and they take on the legal aspects of the lease. The association pays for an insurance policy to cover potential liabilities on the individuals. The clubs pay levies to the association. Getting members to act at trustees is getting harder, hence the insurance policy. I wouldn't do it, not so much about my own liabilities, but because too many people can cause problems because they think they can do what they like without liability.

Some clubs operate as limited companies (the same as BSAC HQ), CASCs, or charities.

So no particular advice, there are pros/cons for all the entity types and you may want to have legal advice.

[Aqua Maria]

Try asking BSAC HQ. They may have come across this issue before.

[Energy58]

Hello,
This is probably more orientated to clubs: due to a refurbishment project, my club (BSAC) is required to renew its lease with our landlord (borough in London). We have been given grief by the borough as they now stipulate that our club is not a legal entity and as such cannot enter into a contract. This might be well true but so will it be for every clubs in the country. So how have you folks managed to go pass this?
Cheers!

Our club lease is in the name of a few club members and the club has a substantial investment that is intended to indemnify them if anything happens. I think that's stupid but it seems to work!
If it was up to me (very unlikely) we would set up a company limited by guarantee to hold the lease and get rid of all the personal liabilities.

[Chrisch]

My (motorbike) club is a limited company (limited by guarantee). We lease some land to ride on and the corporate status enables that.

I really think it is something that you need to look at with a specialist. My club's filing records on companies house look a bit "off" to me, but I honestly don't know enough about companies limited by guarantee. There must be some exemptions. If you know a good accountant that understands this it would be worth a chat. A private members club (which is what you are at present) also is not the same in terms of accounting, liability and so on. They did not teach me any of this at business school sadly.

[Woz]

If you're a BSAC club then you are a legal entity of the British Sub-Aqua Club Limited. You're a branch of the club with a liability limited by guarantee to £1.

[Adrian]

If you're a BSAC club then you are a legal entity of the British Sub-Aqua Club Limited. You're a branch of the club with a liability limited by guarantee to £1.

Really? Not that it matters or helps to open a bank account or sign a lease.

[Woz]

Really? Not that it matters or helps to open a bank account or sign a lease.

Fraid so. Have a read of the Articles of Association.

[Adrian]

Fraid so. Have a read of the Articles of Association.

Still doesn't help does it?

[jamesp]

Really? Not that it matters or helps to open a bank account or sign a lease.

Opening a bank account for a Ltd company is an utter ball ache at the moment; for some unknown reason.
I would happily say I`ve been doing it wrong, but I have friends with multi million £ business that can`t open an account either and my book-keeper is aware of someone running a Ltd company through their personal bank account as they have failed to open a business account anywhere.
It was not the only example of failing to open a business account they were aware of in their practice.

Being Ltd sets you up nicely for £1600+ per year for your accountancy bill.