Unlike an incorporated structure, an unincorporated association is not a separate legal entity from its members. Therefore, an unincorporated association cannot enter into contracts in its own name, or own land, or employ people, or sue or be sued.
What do people who run unincorporated associations have?
Unlike an incorporated organisation (for example, a limited company) an unincorporated association is not a “legal entity” in law. So it has no legal rights and is not separate from its members. It follows that individual members are legally responsible for the acts and omissions of the entire organisation.
Can I register an unincorporated association?
An unincorporated association is not incorporated, so it cannot enter into contracts or own property in its own right. To set up an unincorporated association, all you need to do is write and agree a constitution in your group.
Can unincorporated associations have employees?
An unincorporated association is not a recommended structure for charities that hold property, employ staff or enter into contracts.
Do unincorporated associations need insurance?
Another essential way unincorporated associations protect themselves from such liability is through insurance, with the insurance policy issued to the committee for the time being or a particular officer as a representative of the members.
How does an unincorporated association hold property?
An unincorporated association does not have a legal capacity separate from its members. One particular problem is that it means an unincorporated association cannot own property in its own name; instead, any property must be held by individuals on behalf of the association.
Do you need to register an unincorporated association?
An ‘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 (for example, a voluntary group or a sports club). You don’t need to register an unincorporated association, and it doesn’t cost anything to set one up.
How are the affairs of an unincorporated association managed?
The membership may change from time to time. The members agree, usually in a written constitution, to co-operate in furthering a common purpose. The affairs of an unincorporated association are usually managed by a committee chosen by the members. An unincorporated association does not have limited liability.
How is a transfer to an unincorporated association treated?
If each of the unincorporated association’s purposes are charitable then the court is able to treat a transfer to the association as an establishment of a charitable trust with the treasure as trustee applying the property transferred to the association’s charitable purposes
Can a person Sue an unincorporated group of people?
It is simply the group itself, of people who has agreed to come together to pursue a common purpose, such as to establish a faith community. Therefore, an unincorporated association cannot enter into contracts in its own name, or own land, or employ people, or sue or be sued.
