LoCo governance and incorporation policy?

[Matthew East]

Hi,

On 01/09/2007, Matthew Copple <mcopple at kcopensource.org> wrote:
> 2. Would the community recognize a loco that had an independent, legal
> existence? Right now, the Community Council (which I understand is the
> sponsoring organization for the LoCo movement) really doesn't wield any
> particular control over individual LoCos, except for the power to
> approve them; therefore, it would seem to me that there would be no
> conflict, at least as the system is currently set up. However, does the
> Community Council intend on exercising more closely held control over
> LoCos in the future, and if so, would incorporation interfere with those
> plans?

When this suggestion has arisen in the past, as far as I know our
policy on local teams setting up unincorporated associations or even
incorporated associations has been that it be strongly discouraged.
Although the issue hasn't been discussed in detail recently as far as
I know, personally I would remain of that view.

It may be that in exceptional cases it is unavoidable for a local team
to set up a legally recognised association, but in general I don't
think it's necessary.

There has been quite a lot of talk in the blogosphere about
"liability" and "insurance", but I really don't think this is a
relevant issue. The point seems to be that because it's possible for
accidents to happen at local team events which may be caused by the
negligence of an individual within a group, then there should be a way
for the group to bear liability for this (i.e. by forming a company),
rather than a specific individual. I think it's inappropriate for
volunteer groups to be thinking about taking on liabilities like this,
not to mention the quagmire of legal advice that would be required to
ensure that the result actually matches the intent.

As for fund raising, although it might be helpful for a group to have
funds (I think groups should generally work on the basis that they
should do all they can without such funds), but depending on the
applicable country it is generally possible to set up joint bank
accounts or to have a single bank account held on behalf of the group
by an individual, just by being organised.

Perhaps it would be helpful for the Community Council to discuss this
issue further, if there are more specific arguments that are worth
considering (I'm not saying there might not be).

-- 
Matthew East
http://www.mdke.org
gnupg pub 1024D/0E6B06FF