Many sport and recreation clubs in Britain will be structured as unincorporated associations.
Being unincorporated comes with many advantages – such as a great flexibility within the rules and constitution guiding the club and less administration compared to being limited by guarantee.
Being unincorporated is, therefore, the right choice for many clubs. But it’s important to understand that it is a choice that also comes with risks.
One of the main risks is that of liability. If a club has unincorporated status then it will not have its own legal identity. Therefore members of the governing committee will have to enter into contracts personally.
Members of governing committees are also joint and several liable, meaning that a claimant can pursue obligation from any one party. It’s then the responsibility of the defendant to sort out their respective proportion of liability internally.
To read more click here; http://www.sportandrecreation.org.uk/blog/mlarsen/25-03-2014/governance-why-getting-right-legal-structure-your-club-so-important
