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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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Our members social club pays an individual who has his own

Resolved Question:

Our members social club pays an individual who has his own limited company, to run the bar. He employs the bar staff and pays them, billing the club for his and the bar staff's hours. This same individual is also a member of the club, and is in fact the chairman of the club's Management Committee who effectively employ his limited company. Is this legal, it is certainly a conflict of interest, especially as his wife, another member, is the clubs treasurer?
Submitted: 3 years ago.
Category: Law
Expert:  UKSolicitorJA replied 3 years ago.
Hello,

Yes, it is illegal as it is not against the law or illegal but as you say it is in conflict of interest and duty.

Hope this helps
Customer: replied 3 years ago.

You mean it is legal not illegal. Do you think a conflict of interest and duty is sufficient reason to call a special members meeting, which the constitution allows, to remove him as Chairman.

Expert:  UKSolicitorJA replied 3 years ago.
Sorry, yes, I meant it is legal.

You may call for a members meeting given the conflict.

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