club accounts

[dalebrignall]

when do we get a copy of the club accounts i dont think ive seen one yet this year.is it law that if you are a paying member of a club ,you recieve a copy of the accounts.just asking the question thats all

[alex_holden]

IIRC we got a copy at the AGM last year.

[ASL642]

The accounts should come out with your notification of the AGM which will be with the next copy of MM.

[Judge]

I do hope that everyone will take the time to read through them, afterall it's your money.

[jonathon]

Should we also receive the notice of the AGM and its agenda, ie nominations, topics of discussion, so that we might have a chance of preparation.
I'd be very interested in the costs for the National and the profit that it made.

[Judge]

There are a number of expenses that I would be interested in, particularly as the subscriptions went up by £2 last year.

[jonathon]

Thats around £24,000, blimey , where.................................?

[dalebrignall]

could have baught another birthday cake then.

[millerman]

Got a bit interested in Limited Co's. http://wck2.companieshouse.gov.uk/303db ... ompdetails.

Didn't feel like paying a £1 for info but it would be interesting to have an article in Minor Matters as to why the Club is a Ltd company, etc.

I have often wondered if the Club could become a Charity but I do realise that the Club may not have sufficient 'charitable objectives' to become a registered charity.

Indeed there may be no financial or other reason to do so.

Just trying to think 'outside the box' !

[jonathon]

Having a limited company means that your liability is limited, which protects your personal assets from your company's debts, and means that your company can apply for credit, loans and mortgages in its own name.

Because limited companies have records with Companies House, they are often seen as a more reliable and secure option than non-limited companies. The availability of your company's records may help creditors and customers build up a sense of trust and faith in your business.

Being a limited company also protects your company name so that no other company can use it.

It may also be a way of paying less tax, but as no one takes a dividend then this will be less important.
I think the protection of the directors might be the main reason, and maybe the members as alledgedly if the Club was wound up each member is obliged to pay £1 towards this.
I'd like to know if the directors, by whom I guess we are talking the committee ?? are sole share holders, and if not who holds the shares if this is indeed even applicable in a club environment

[bpr81a]

As I understand it, there are no shareholders - the company is limited by guarantee, not by shares.

[jonathon]

Thankyou for that Jon, clears up a few myths.

Wikipedia says;-

In British or Irish company law, a company limited by guarantee is an alternative type of corporation used primarily for non-profit organisations that require legal personality. A guarantee company does not usually have a share capital, but instead has members who are guarantors instead of shareholders. The guarantors give an undertaking to contribute a nominal amount (typically very small) towards the winding up of the company in the event of a shortfall upon cessation of business. It is commonly believed that it cannot distribute its profits to its members but this is not actually true.[1] A company limited by guarantee that distributes its profits to members would not be eligible for charitable status.

Like a private limited company, a company limited by guarantee must include the suffix "Limited" in its name, except in circumstances specifically excluded by law. One condition of this exclusion is that the company not distribute profits.

Common uses of guarantee companies include clubs, membership organisations (including students' unions, sports associations (such as the PGA European Tour), workers' co-operatives, other social enterprises, non-governmental organizations (NGOs) and charities (such as Oxfam). The railway infrastructure provider Network Rail, domain name registry Nominet UK, England and Wales Cricket Board and IXP LINX (London Internet Exchange) are also companies limited by guarantee. Australia also has companies limited by guarantee, Cricket Australia being one example.

[millerman]

Thanks very much for information.
It would seem then that the MMOC has had sound financial advice over the years.

[jonathon]

True, now needs to release just a bit more of its income

[Judge]

And improve communication with its members, there are still a large number of questions that remain unanswered.