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Buachaill, Barrister
Category: Law
Satisfied Customers: 10955
Experience:  Barrister 17 years experience
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I am a trustee( 1 of four) of a sports & social club and the

Customer Question

I am a trustee( 1 of four) of a sports & social club and the lease on the property is up for renewal. It is for a 15 year term. The club like so many is struggling to maintain trading? As the lease is 15 years would I and my colleagues have any financial liability if it ceased to trade during this lease term? We are not a limited company. We are a none profit organisation run by members for benefit of members.
Submitted: 2 years ago.
Category: Law
Expert:  Buachaill replied 2 years ago.
1. Being trustee of a sports club, you have a personal liability for all debts, subject only to the other members of the club indemnifying you. Accordingly, if there is a 15 year lease and you take this on in your name as a trustee, you need to either be damn sure the club will stay solvent and continue to indemnity you or you must have sufficient financial wealth that if the worst happens, it will not affect you in any large way. However, you need to realise that being trustee for a sports club involves a personal liability. Getting reimbursed from this liability is fully dependent upon the club being able to indemnity you. So if you have doubts about the continuation of the club or the solvency of the club you should not take on the role of trustee. But it is not correct to say you are not liable.
Customer: replied 2 years ago.
Thank you, ***** ***** we indemnify our selves from financial liability. What do the Club /Management Committee have to do?
Expert:  Buachaill replied 2 years ago.

2. You need to have it written into the club constitution that the members shall at all times keep the Trustees of the Club indemnified against all liabilities. Additionally, the club can carry insurance that all liabilities be paid should there be a financial problem. Issues most often arise around liability claims taken by persons injured during club events or on club premises. So insurance is key.