Club / Treasurer Joint and Severally Liable

Ed_Bond

Hi,

I am looking at becoming treasurer for a local club, but I am not comfortable being joint and severally liable for the bank account.

I can do the job without access to the bank account, but it would be easier if I can.

We are currently with Lloyds. Are there any accounts/banks that this would not apply to? I don't want to be a single signatory on the account, and the account needs 2 out of 3 signatories.

Any thoughts on different accounts would be appreciated!

Had a search of the forums, but can't find anything relevant - though I am sure I missed something!

thanks in advance!

Ed

paddyrg

I'm not sure what's left - you don't want joint/several liability nor sole control/liability. I doubt you'll get one person to have sole liability whilst still having shared control - sounds like a disaster for the person liable!

Charityworker

Are you going to be a trustee of this charity or just a treasurer? If your a trustee you are financially liable for the charity should it go under. You therefore need a reserves policy. The treasurer should work out how much it would cost to shut the charity down if the worst happens and if the bank balance goes so low it hits that amount then no trustees will lose money. If your just a straightforward committee treasurer though you can be the signatory for a bank account without any implications or without being financially liable. But it's always like this with the treasurer job. That's why it's always the hardest to fill.

ChiefGrasscutter

Where does it say its a charity?

Savvy_Sue

I'm struggling to work out what the problem is: when I took over as treasurer of a small walking group I discovered that the bank account only needed one signature, and there were two people who were authorised to do this. One was no longer on the club's committee, and was nursing a dying spouse, and the other had just had a stroke so was physically unable to sign.

Fortunately you don't need the outgoing signatories to sign things, so within a very short space of time we had four signatories, any two to sign. I declined internet banking as that bank could not offer dual authority for that.

If the club's in good financial health, it shouldn't be an issue. If you can't find out what state things are in, possibly best to walk away, unless there's a strong committee who want to turn things around. Financial liability should be mentioned in the club's governing documents.

ChiefGrasscutter

Well one of the 'problems' might be were the club to be sued the likelihood of which of course would depend on their activities.

I would expect the club would have some public liability insurance which also covered committee member legal expenses if this possibility was a concern. It may be the local club is a offshoot of a larger organization such a a local committee then the parent organisation might offer such insurance as part of its own cover.

If any such legal action was successful against the club then I would expect the winner to go after the clubs assets and then the authorised signatories or club officers personally for the 'shortfall' were there no insurance cover.

I now refuse to be a committee member of any such organisation which does not have full PL insurance in place.
Why?
Cos I was sued as an officer and authroised signatory of a club as were the other authorised signatories/officers.
Yes we were insured
Yes the insurance supported us
Yes it went to court
Yes I spent a 'happy' day of my life in a county court defending the claim
and No they lost with our costs awarded against them.
(Which did send out the useful message to others not to even think of trying it)