Constitutional

Re-registering as a Registered Society

Social clubs may be registered under either the Co-operative and Community Benefit Societies Act 2014 or the Friendly Societies Act 1974. Some clubs, particularly sporting and rugby clubs, remain unregistered.

As most institutions registered under the Friendly Societies Act are insurance or building societies, the requirements of that Act are often onerous and ill-suited to members’ clubs. Accordingly, provision exists for clubs to de-register and re-register under the Co-operative and Community Benefit Societies Act 2014.

Advantages of re-registration

The principal advantages of re-registering as a registered society include:

• the club acquires limited corporate status, removing the need for trustees;
• the accounting, record-keeping and business control requirements under the 2014 Act are generally more appropriate for social and sporting clubs; and
• the society becomes a legal entity in its own right, capable of suing and being sued in its own name.

Under the Co-operative and Community Benefit Societies Act 2014, the concept of trustees holding property on behalf of the club does not apply.

Potential disadvantages

Re-registration may have consequences which should be considered in advance. For example, there may be an impact on rates relief or other local authority concessions, depending on the circumstances of the club.

The re-registration process

There are five principal stages in the re-registration process:

1. obtaining the consent of the members to the proposal;
2. drawing up rules compliant with the Co-operative and Community Benefit Societies Act 2014;
3. completion of the prescribed application form;
4. registration of the application with the Financial Conduct Authority; and
5. transfer of all property and documents previously held by the trustees.

Unregistered clubs

Where a club remains unregistered, it is not recognised as a separate legal entity and cannot benefit from the protections of incorporation. In particular, while a registered society can sue and be sued in its own name, an unregistered club cannot.

Further guidance on re-registration is available in guidance notes issued by the Financial Conduct Authority.