Unincorporated Associations - Soon To Have Legal Personality?

There are tens of thousands of unincorporated associations in Scotland including clubs and non-profit-making associations. The Scottish Law Commission proposes a change to the law under which such associations will be accorded separately legal personality if they satisfy certain legal conditions. Shuna Stirling considers the proposals.

The issue

Unincorporated associations are groupings such as associations, clubs and churches which have not chosen to establish themselves as companies or as some other form of incorporated body. At present an unincorporated association has no separate legal personality. This causes problems if it wishes to enter into contracts, own property or engage employees. It cannot contract in its own name - so who exactly is entering into the contract? There is a risk that office holders and sometimes even members of unincorporated associations will incur personal liability (with potentially serious financial consequences) e.g. under a contract entered into by the association, or for certain criminal offences committed by the association (e.g. health and safety), or to compensate third parties who suffer injury while using the association's premises or other facilities.

Scottish Law Commission's recommendations

Following consultation (see our previous article ), the Commission has published...