LoCo governance and incorporation policy?

[Jan Claeys]

Op maandag 10-09-2007 om 08:43 uur [tijdzone +0100], schreef Matthew
East:
> 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.

Did you know that in some countries (e.g. Belgium) every individual
member of a non-incorporated association has a capital liability for
everything that "the association" does wrong?

Of course that's not really a problem when the risks are low (like the
activities we do now), but e.g. organising a large(ish) party or a local
conference would be something else.


> 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),

Not all LoCoTeam members have the money to pay for photocopies (for
flyers, etc.), CD-Rs (Shipit doesn't ship us enough CDs to cover our
requirements), booths at computer fairs, transportation, etc.  Also,
some people don't have the time, abilities or wish to actively help, but
are happy to contribute financially (we're not talking about heaps of
money here, but it sure helps).

> 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.

A bank account held by an individual might result in the tax office
getting interested in that money, which could cause trouble for that
individual.  Fortunately it's possible to open an account as a
non-registered association in Belgium...


I have said this in the past: I seriously suggest everybody checks local
laws & law cases and get advice from other local associations about what
might be the best solution for them, also depending on the type (and
associated risk) of activities they have etc.
And working under the umbrella of another organisation is a good option
to get protection and insurance without having the burden of a
corporation yourself, of course.


-- 
Jan Claeys