Over the past few years the management of sports clubs has become more complex with governing bodies of the more progressive sports, including cricket, promoting many changes. These changes have varied from the legal requirements brought on by such things as child protection legislation to other tax driven changes driven by the requirements to become a Community Action Sports Club (CASC) and more recently the changes centre round incorporation to mitigate the personal risks of members in today's litigious society.
Whilst Headley CC is a very traditional club we are in favour of embracing these changes and in the past few years we have become a CASC which brings financial benefits for donations to the club and we are now proposing to incorporate the club as a company limited by guarantee. We have researched other options which include becoming a share issuing limited company and becoming an Industrial and Provident Society but believe the company limited by guarantee to be the most relevant and effective for Headley Cricket Club.
Historically the majority of sports clubs have been unincorporated associations which has meant that their members may be personally liable for the debts of the Club. This is an issue that has been raised previously by committee members and despite raising our insurance cover over the past few years the residual risk was felt by some to be too onerous.
If club members were instead members of a company they would have limited liability and may only be personally liable if they had committed some wrongdoing or if the organisation continued to trade when insolvent. There are other advantages to incorporating but these relate to property ownership and trustees which is not relevant to Headley CC.
The only downside to incorporating is that companies are subject to outside scrutiny. Companies must file certain documents at Companies House including annual reports and accounts and these are therefore public documents. Such transparency however cannot harm us. The only other downside is a small increase in our secretarial work.
In summary, the club will be run as before and members should not notice any difference but we’ll all sleep better knowing that there is a limitation on the members liability should the worst happen. I do hope I can count on your support in taking this important step in helping to protect the future of our club.
Andrew Pickering
Chairman