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Liability for debt when a private members club goes under

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crystaltipps | 15:48 Mon 24th Apr 2006 | Business & Finance
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I've just had a letter asking me to pay a share of a debt incurred by a club that I was once a member of. The debt was initially incurred (i.e. the loan on which they defaulted was first taken out) before I became a member and I was no longer a member when the club ceased to trade. Am I still liable for a share of the debt?


Thanks for any help anyone can give.



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I'm no lawyer but it seems to me to be a bit of a "try on" unless you signed specific documents at the time of joining that tied you into some kind of financial liability for the club's funds. I would have thought that your resignation ended your liability. Possibly the Citizen Advice Bureau can give you more reliable information.

I, also think it is a try on. If you were a trustee of the club than I think you may be liable but some clubs take out trustee's liability insurance to prevent anyone getting sued.



Hope this helps?

I think it depends on the articles of association of the club. Such clubs are typically owned by the members, but may be set up as companies limited by guarantee. You need to get hold of the articles of association and a copy of what you signed when you originally joined.
You have no liability for the debt. Just because someone or a company says that you have a liability for something, does not mean that you really have - they are just trying it on. People take for granted, the things that thes companies tell them - they should not. Even contractual agreements do not always mean that the said obligation would be enforeceable in law as they may be unfair contractual terms (Unfair Contract Terms Act, Unfair Terms in Consumer Contracts Regulations)

There is little doubt that if you had been a trustee you might have had a liability.


Otherwise, I agree it looks rather like a try on but you shouldn't ignore it - do what buildersmate suggests. Also, find out whether they are asking all present and former members to contribute and if not why not.

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