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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
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Experience:  English solicitor with over 12 years experience
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I am one of five Trustees for a private members unincorporated

Resolved Question:

I am one of five Trustees for a private members unincorporated social club. Club rules state that all club assets are vested " in the names of the trustees for the time being ".
Currently, the club's solicitors are acting in respect of a claim for unfair dismissal by a previous Bar Manager. The matter has yet to be heard before a Tribunal. A problem may arise, since the clubs AGM is to be held on the 23rd March. Unfortunately, there are several members standing for election as officers and committee, who we know are very friendly and sympathetic toward the individual. The fear is that a new committee, made up primarily of these people, could decide to call a halt to tribunal proceedings and agree to whatever the financial demands are.
Q.
Assuming the worst scenario, can we, the Trustees, apply for an INJUNCTION against all the club assets until the outcome of the tribunal is known?
Submitted: 3 years ago.
Category: Law
Expert:  UKSolicitorJA replied 3 years ago.
Hello,

I am afraid I do not see how this is possible.

If new Trustees are elected at the AGM later this month, then I am afraid the Club's assets will vest in these new Trustees under the Club's rules and I do not see a court interfering with this rule, especially on a fear which may or may not prove to be well founded.

However,Trustees have various legal duties e.g. duty of care, duty to act prudently etc and if the new Trustees show bias towards this ex employee and agree on a financial settlement which is unreasonable, the club's members may at that point take action against the new Trustees.

Hope this helps
Customer: replied 3 years ago.

Thank you for your reply d/d 13th March. For further clarification I should point out that the Trustees are not subject to election at the AGM. We Trustees remain in office until such time as we either, voluntarily resign, are no longer able to perform our duties or act in such a way as would be detrimental to the interests of the club.



Given that we will remain in office, would this fact alter your advice?

Expert:  UKSolicitorJA replied 3 years ago.
Thank you for clarifying.

In that case, the club's assets would remain vested in the current Trustees who would have the same duties of care, o act prudently etc.

Hope this clarifies.
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience: English solicitor with over 12 years experience
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