Ask Mike - Club - Latest - Legal

Can Our Club Be Limited By Shares?

March 22nd, 2017

questioniconA sports club can indeed choose to incorporate as a limited company by shares but it is not advisable for a club that is not for profit.

A club that is not for profit will need to demonstrate to potential funding organisations and to the tax authorities that any profit/surplus it makes is NOT distributed to the members of the club but is instead reinvested back into the club.    This would be contrary to the structure of a company limited by shares, where the shareholders would normally be paid a dividend based on the financial performance of the company.

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Ask Mike - Club - Latest - Legal

Can Our Club Sign Contracts if it is Unincorporated?

February 26th, 2017

questioniconAn unincorporated club is one that is not a corporate body, i.e. it is not a limited company or an Industrial and Provident Society.    The vast majority of clubs are unincorporated associations, run by a committee and governed by an agreed constitution.

Clubs that are unincorporated associations do not exist in law and therefore cannot sign contracts.    If an unincorporated association does sign a contract, the contract will be legally valid and it will actually be the members of the committee who will have signed the contract and will be bound by contract law as to the outcome of said contract.

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Club - Legal

Clauses in your constitution do not limit liability

February 20th, 2017

warningiconWe are coming across a number of sports clubs whose committee members tell us that, even though their club is not a limited company, they do not have liability for the debts of the club because they have a clause in their constitution which specifically limits liability of the committee members in the event that the club cannot pay its debts.

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Club - Employment - Latest - Legal - Volunteer

Is Your Volunteer REALLY a Volunteer?

January 29th, 2017

resourceiconA number of clubs were penalised by the tax authorities last year for paying volunteers so called expenses because they were deemed to be a payment for services, i.e. the volunteer was in fact a worker.

This will happen if you pay volunteers for more than their actual out-of-pocket expenses and it is something HMRC will scrutinise if they decide to inspect your club or coaching business.

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Ask Mike - Club - Latest - Legal - Volunteer

What is an Unincorporated Association?

January 25th, 2017

questioniconAn ‘unincorporated association’ is an organisation set up through an agreement between a group of people who come together for a reason other than to make a profit, e.g. a sports club.      The term is also used to describe the organisation as not being a ‘corporate body’, i.e. the organisation is not a limited company.

The vast majority of sports club are unincorporated associations.      You don’t need to register an unincorporated association with anyone and its rules and regulations are typically detailed in a constitution.

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Club - Latest - Legal

Is Your Club or Committee At Risk of a £20,000 Fine?

January 9th, 2017

warningiconA recent call from a panicked committee member to our helpline highlights the need for sports clubs to be vigilant in ensuring that they check that any worker at the club is entitled to work in the UK.

The call resulted from the committee member finding out that their recently engaged coach does not actually have the right to work in the UK.     The club had not carried any checks before recruiting the coach and now face the prospect of  a maximum financial penalty of £20,000 (per illegal worker) should the authorities find out about the appointment.        The club is an unincorporated association with little money and therefore any fine imposed on the club will be the personal liability of one or more members of the committee if the club is unable to pay.

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Ask Mike - Club - Coach - Latest - Legal

Do I need a licence for playing DVDs in our clubhouse?

December 10th, 2016

questioniconYou may legally require licences from THREE different regulatory bodies if playing DVDs publicly, i.e. to members, non-members or pupils.     A public performance of a DVD is any showing that is outside a ‘domestic and private context’.

The Copyright, Designs and Patents Act 1988 states you need to get permission from the copyright holder to ‘perform’ music in public – and a music licence grants you this permission.     Unfortunately, the rights of performers, directors and composers are regulated by three different organisations, hence you may need three different licences, depending on the film you are showing.

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Club - Coach - Latest - Legal

Music in Your Club or Coaching Requires a Licence or Three

December 3rd, 2016

warningiconDo you play recorded music in your clubhouse or coaching sessions using a radio, CD player, TV or MP3 player?   Can more than one person hear the music?  Then you are legally required to have at least one music licence – failure to do so could result in prosecution.

Playing recorded (or live) music where more than one person can listen to the music legally requires two music licences, one from an organisation called the Performing Rights Society (PRS, representing songwriters and publishers) and one from an organisation called Phonographic Performance Limited (PPL, representing record companies and performers).

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Ask Mike - Bookkeeping - Club - Coach - Latest - Legal

Can I pay a child to help out at our club?

November 21st, 2016

questioniconThanks to Chris for this question asked at a workshop we ran this week for Southwark Council.      It is illegal to pay any child who is aged less than 13 years of age.

If the child is aged 13 and over, you will need to apply to your local education authority for a work permit.   Do not pay a child if you do not have a permit – you can be fined up to £1,000 for not having a permit.    The permit will detail what hours the child can do, which will be dependent on their age.

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