Financial Risks

[Tiffy]

I wonder if organisations realise that all members including the Committee
Members personal assets are at risk if they have a claim which exceeds
their public liability insurance. This might also include your Insurance
Company refusing to pay out because you did not have a up to date
Risk Assesement . Ie you might have to sell your house.

I would recommend all organisations to become a Company Ltd by
Guarantee , as well as a Charity. A Company is easy to form and not
very expensive . It limits the liability of each member to £1.

We used Ashcroft Cameron 5 Holywell Hill St. Albans AL1 1EU
0727 847523 . They know all the right jargon for Articles of Association
as a Indepenant Lifeboat or Rescue Service. Your Trustees become
Directors , and you retain your Charity Status.

Risk assessment has to be very details , and we use a Mr Ron Hancock
a professional assessor. Who is sympathetic price wise to voluntary
organisation. 01794523942 07857769638 . Who having gone right
through our organisation has a Custom Risk Assessment which would
cover all sea rescue organisations.

Also do not forget if you have any juniors under 16 , your Instructors
need to have CRO Disclosure Certificate.

Hopes this is helpful , contact me at any time on captiffy13@msn.com
for further information on this subject

[fuzz]

Also do not forget if you have any juniors under 16 , your Instructors
need to have CRO Disclosure Certificate.


juniors are under 18 years not 16.

Fuzz

[Poly]

Originally Posted by Tiffy

I wonder if organisations realise that all members including the Committee
Members personal assets are at risk if they have a claim which exceeds
their public liability insurance. This might also include your Insurance
Company refusing to pay out because you did not have a up to date
Risk Assesement . Ie you might have to sell your house.

the solution to that is to ensure that your insurance is adequate and you meet its requirements including up to date risk assesments as appropriate. you would only have to payout if there has been some degree of negligence/error by the organisation behalf. Any "award" has to be in proportion to the loss. So what circumstances are you imaginging where through your incorrect actions you exceed the insurance limitations?

I would recommend all organisations to become a Company Ltd by
Guarantee , as well as a Charity. A Company is easy to form and not
very expensive . It limits the liability of each member to £1.

the most appropriate mechanism may well not be the same for every organisation. Any organisation worried about this would be better placed speaking to a professional (e.g. lawyer) about this to make sure they understand what they are doing. There are disadvantages and legal responsibilities to alternative structures too. e.g. with regards paperwork and duties of directors (a potential £5000 fine if you "forget" to file some paperwork!), accounting practices, etc.
The word "Ltd" at the end of your name has (rightly or wrongly) got a commercial association with the public and so may result in some questions about your intentions, i.e. do you exist for profit.
Additionally opting to garuntee for just £1 will be unattractive to any potential creditors if that matters to your organisation (and it might not now but could in the future).

Also it is commonly forgotten that in some circumstances directors can be held personally liable if there is any wrong doing in the management of the "company". Failing to have an up to date risk assesment in an organisation such as yours could be a breach of the health and safety at work act and therefore the directors could still be liable to prosecution!

I would imagine most lawyers in this field would be happy to advise a charity if you use them to do the incorportation (if that is what is best) and any other work you need.