Legal Question in Business Law in United Kingdom

associations - what are the legal requirments when starting an association - pro

associations - I wish to start and advertise an association for property owners on a web site that is currently under construction.

1. What are the legal requirements when starting a members association

2. Can i charge for membership as i intend to offer a service for the whole as well as covering costs, Web Hosting etc

3. I intend to advertise a members association on my web site are there any legal requirements for such


Asked on 1/15/04, 10:44 am

1 Answer from Attorneys

Richard Howard Richard Howard & CO

Re: associations - what are the legal requirments when starting an association -

1. There is no required legal form for an �association�. People that group together in associations and remain unincorporated are nevertheless subject to various provisions of the Companies Act but, generally speaking there are no special features of an unincorporated association. They are unattractive because each of the members has unlimited liability and there are technical problems about an unincorporated association owning property, e.g the intellectual property in a website. Other than charities or members clubs any business related activity is best dealt with through an incorporated vehicle under which the liability of members can be limited.

2. Yes, but see 3 below.

3. There are numerous regulations which now impact on advertising with a view to executing a financial or legal transaction through a web site and specific provisions which relate to electronic commerce and distance selling electronically. The sale of membership rights in your organisation will probably be subject to all of these legal requirements

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Answered on 1/19/04, 7:29 am


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