The WVFDTA is currently a not-for-profit organisation which legally is an unincorporated body. It does not exist independently as far as the law is concerned. This means that it can only exist through its trustees and members, that is, via the officers, committee and members. Whilst the Association was small and carried out few activities, this model worked well.
However, as WVFDTA has become bigger and started to undertake activities which have a commercial risk, this model has become less satisfactory.
The Committee has taken legal advice as a result of which members resolved at the Business Meeting of 18 October 2011 to move towards changing the Association’s structure to that of a Company Limited by Guarantee.
How will this work in practice?
- The company will have the same objectives as the Association has at present.
- The members will appoint company directors who will be responsible for filing all of the appropriate papers with Companies House as required from time to time and will make similar decisions to those currently being made by the Association’s Committee.
- The directors have a legal duty to promote the success of the company and must act in good faith.
- In the event that the Company is sued, the companies’ liability is limited to that which it has in the bank, plus each member can be required to pay the amount that he/she/it has guaranteed, which in practice will be £1.00.
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