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Author

andy_lecap

Posted
17/03/09 9:17 AM

Updated
26/02/09 2:51 PM

Comments 2

Constitution, problem of understanding

The Llanidoes Car Club has been running for nearly 2 years and we are reviewing our constitution to make sure it reflects the needs and aspirations of the club. We are a unincorporated association still as we have no assets, all vehicles are loaned to the club, the club looks after them (sorts and pays the insurance, tax and maintenance) and provides the booking system and collects payment for car use from the members. In our constitution there is one paragraph which we don´t fully understand and would appreciate some help. It reads: The members of the Committee shall be indemnified by the members of the Association against all liabilities properly incurred by them in the management of the affairs of the Association (etc.) I think we are stuck on the word indemnified. We might need the view of a legal person, but I thought that someone who is familiar with constitutions might be able to provide a suitable explanation within the context of a car club.

Author

Post : #2
andy_lecap

Posted
05/03/09 11:35 AM

Constitution, meaning of the word Indemnify

I have been sent the following explanation by PAVO in Llandrindod Wells: "The clause means that Committee members are indemnified by the ordinary members of the Association if the Committee were to be successfully sued for an act properly undertaken on behalf of the members and if the association does not have sufficient assets to indemnify them. This reduces the liability of members, who can claim from the other members of the Association, but it increases the liability of all the other members, making them liable where they are not a principal to a contract or have not authorized or taken part in a tort. Without such a clause, individual members who are sued have no right to be indemnified by the other members of the association." Question closed.

Author

Post : #1
glenn.bowen

Posted
17/03/09 9:17 AM

RE: Constitution, meaning of the word Indemnify

Hi Andy Glad you have found an answer to your question. As an unincorporated association it is important to continually assess risk and make sure that potential risk is managed through robust policies and procedures, relevant insurances and the corect structure. It is clear from your posts that you are keeping a check on any risks your organisation may have. Glenn

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