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Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10857
Experience:  Barrister 17 years experience
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What liability do trustees of a trade union have debts

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What liability do trustees of a trade union have for the debts of an insolvent TU, in the absence of wrongful trading (or worse)?
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
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.
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Customer: replied 1 year ago.
Thanks, that's enough. My "client" is a friend with very limited finances.