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Buachaill
Buachaill, Barrister
Category: Law
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Experience:  Barrister 17 years experience
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What liability do trustees of a trade union have debts

Resolved Question:

What liability do trustees of a trade union have for the debts of an insolvent TU, in the absence of wrongful trading (or worse)?
Submitted: 1 year ago.
Category: Law
Expert:  Buachaill replied 1 year ago.
1. Dear *****, the liability of trustees of a trade union depends upon the legal form of the trade union. Is the trade union an association, a limited company or a company limited by guarantee? If you can find out the legal form of the trade union, I will be able to answer your Question. Having trustees is merely a method of holding the property of the trade union.
Customer: replied 1 year ago.
It would appear to be an association - see http://www.tgsa.org.uk/constitution.asp. The TU files annual returns with the Certification Officer - see https://www.gov.uk/government/publications/shield-guarding-staff-association-annual-returns
Expert:  Buachaill replied 1 year ago.
2. Dear *****, Yes, this is an association. In practical effect, it means that the trustees can get sued by an outside third party and in practical terms, their liability is unlimited. However, the trustees are entitled to seek an indemnity from the other members of the club. However, this potential indemnity is subject to the members declaring the unincorporated association at an end and winding up the association. So, in practical effect, if the other members so wish, the liability can be placed, solely, on the trustees, as these will be the people sued by any third party. In law, the liability of a member of an unincorporated association is limited to the subscription. So the general members have no liaibility for debts, but the trustees have unlimited liability.
Expert:  Buachaill replied 1 year ago.
3. Please Rate the Answer as unless you Rate the Answer your Expert will receive no payment for answering your Question.
Buachaill, Barrister
Category: Law
Satisfied Customers: 10411
Experience: Barrister 17 years experience
Buachaill and 4 other Law Specialists are ready to help you
Customer: replied 1 year ago.
Thanks, that's enough. My "client" is a friend with very limited finances.

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