A recent court case caught our eye regarding the liability of committee members of unincorporated associations which we thought served as a useful reminder of the potential pitfalls of being on a committee of an unincorporated association.
In short, it involved a Mr Davies who was a committee member and president of his local rugby club. The club’s treasurer signed a contract on behalf of the club with a building company for work to the club’s premises. The treasurer’s signature was witnessed by Mr Davies. The contract provided for payment by the club to the building company of an agreed sum, plus some other sums which might become payable under the contract. Without going into too much detail, the long and short of the case was that, despite not signing the contract, Mr Davies and other members of the committee were personally liable to the tune of £147,000 in respect of the contract.
The case illustrates the serious unintended consequences being a committee member of an unincorporated association can have.
Click here to read our full article about ways to minimise the risks.
If you are on the committee of your local golf or rugby club, or you are the trustee of an unincorporated charity, this note will be relevant to you.
