Social club chaos - help needed

shadydaz

In accordance with our social club constitution,  20 members have to sign together to raise an EGM request.  We gather 27 signatures and submitted an agenda to the current so called ‘committee’ to address mamangement issues.  The constitution states that the committee have 7 days after submission of request to contact all memebers notifying them of a date for the EGM,  which is to be within three weeks of the original request date.  

We received a letter from solicitors acting on behalf of the committee stating the constitution was out of date (but not invalid) and the committee were going to resist any EGM request while financial inventions were being conducted (our EGM request and proposed agenda was not in any way financially related). This was followed with a threat to recover legal costs from the members who requested the EGM,  should they continue to pursue the request for an EGM at all.  

The club is a shambles and the committee or currently using any excuse to ban any of us in party to this EGM request.  It’s all very messy and the current committee obviously do not have the best interests of the club at heart otherwise we would not have gained such support in order to raise the EGM request in the first place.  

Where do we stand with the current committee being in breach of the club constitution and trying to get them to stop hiding behind legalese?  

Hoenir

Use of solicitors and reference to financial investigatons suggests there is something extremely serious being dealt with. At this juncture your agenda may well be irrelevant while other matters , which cannot be openly discussed, are resolved.   As a member in such a scenario I would want clarity before deciding on any course of action. That would incur the club in any unneccessary expenditure. 

LinLui

Whilst I agree that it appears that something serious is going on,  I think members have every right to a better explanation than threats of legal action against them! 

Assuming the organisation isn't a registered charity - if it is then involve the Charity Commission - then the committee cannot simply decide the constitution is out of date and so they won't apply it.  If it is not the current constitution,  you have a right to ask for the current one.  And I would have to say that it is a bluff to suggest that the committee can take legal action against their own members exercising their membership rights to hold the committee to account. In no court of law would that hold any water whatsoever. 

The "ruling document" is the constitution, and the committee operates on behalf of the membership,  not instead of it. If members have grounds for concern they have a right to call for a an EGM and threats to get them to back off are not acceptable. If anything such ridiculous threats suggest that the committee is trying very hard to hide something.  However, the issue is that if your club has no legal standing,  the only way forward is for the members to take their own legal advice. 

The bottom line here is that,  assuming an incorporated association,  it is the trustees who are legally liable - and that includes financially liable - for the association. You might approach them and point out that as things stand it appears that there is mismanagement going on,  that the committee have a much as admitted financial irregularities,  and that unless the EGM is convened, it will be the members who will be taking legal action. In the end,  the personal assets of the trustees are at risk should that happen. The members might also suggest that unless they are listened to,  they may want to approach the police as they have reason to believe that there is something seriously wrong with the finances.  

ps. I should have added,  calling an EGM is a right,  and there is no discernible cost to doing so anyway,  so what costs do they think they will trying to recover from members? 

Grumpy_chap

shadydaz said:

In accordance with our social club constitution,  20 members have to sign together to raise an EGM request.  We gather 27 signatures and submitted an agenda to the current so called ‘committee’ to address mamangement issues.  The constitution states that the committee have 7 days after submission of request to contact all memebers notifying them of a date for the EGM,  which is to be within three weeks of the original request date.  

We received a letter from solicitors acting on behalf of the committee stating the constitution was out of date (but not invalid) and the committee were going to resist any EGM request while financial inventions were being conducted (our EGM request and proposed agenda was not in any way financially related). This was followed with a threat to recover legal costs from the members who requested the EGM,  should they continue to pursue the request for an EGM at all.  

The club is a shambles and the committee or currently using any excuse to ban any of us in party to this EGM request.  It’s all very messy and the current committee obviously do not have the best interests of the club at heart otherwise we would not have gained such support in order to raise the EGM request in the first place.  

Where do we stand with the current committee being in breach of the club constitution and trying to get them to stop hiding behind legalese?  

That is very odd for a social club to have such a situation that the committee respond too a request for an EGM with the threat of legal action and references to a financial investigation.

The reference to the constitution being out of date (but not invalid) seems odd. 
The constitution is the constitution until such time as it is superseded by an updated constitution which has to be changed in accordance with the process set out in the current constitution.
So what does "out of date" mean?  Some clause that is struck out because of a legislative change that affects some detail?  Such matters need to be resolved by following the process set out within the constitution to update the constitution, not simply the committee declaring the constitution as no longer applying.

You have not mentioned what the original matter was that you called the EGM for, but then received the response that the EGM was being resisted because of financial investigations.

What legal costs do the committee think will be incurred through holding the EGM?
It is simply a case of a meeting the in the meeting place where the 27 (or more) members plus the committee talk through the issues that led to the EGM request.  
There may be a cost for the venue hire?
There may be costs for the committee members to attend (expenses / salaries if paid committee) but I would normally expect that to be zero if the social club has a committee run by members.

The signatories requesting the EGM could simply shut up and go away, withdrawing the EGM request (as the committee wish).
The signatories could stand by the request for the EGM to be held as per the original request and in line with the constitution.
The signatories could double-down, so withdraw the original EGM request and then submit a revised EGM request with a more comprehensive agenda to cover the matters that originally led to the EGM plus the additional matters relating to clarity and openness of the financial investigations that the signatories are now aware of.

Frankly, all of this is looking really rather messy and quite likely that the club in it current form has limited life expectancy.  The more practical option might be for the 27 signatories to simply enjoy social activities together outwith the cover of the current social club. 
Are the individuals financially invested in the current social club (beyond annual membership fees)?  
Does the social club have assets that the current committee are working towards divest the membership, then wind up the social club, sell the assets, distribute amongst the last members?

Savvy_Sue

It's always worth finding out what skills are available to your 27 members: if someone has suitable expertise then "bring it on" may be a suitable response to threats of legal action ...

You may also be able to find some pro bono support, although that may only be accessible to the current committee. Google volunteers plus your town / City/ County to see if there is a support organisation. 

Mediation might also be available through that route.

Grumpy_chap's questions are also important. 

Hoenir

Savvy_Sue said:

It's always worth finding out what skills are available to your 27 members: if someone has suitable expertise then "bring it on" may be a suitable response to threats of legal action ...

Suggesting confrontational action without knowing the full facts is never wise............ 

Savvy_Sue

Hoenir said:

Savvy_Sue said:

It's always worth finding out what skills are available to your 27 members: if someone has suitable expertise then "bring it on" may be a suitable response to threats of legal action ...

Suggesting confrontational action without knowing the full facts is never wise............ 

True enough, but if any of the disgruntled members have the kind of skills - accountancy, for example - which might help get to the bottom of the issues, I'd say it was worth knowing. 

Mediators would be top of my list to look for, as it happens!

theoretica

I wonder if the cost could be paying the lawyer to be there and say no comment to all possible questions. You don't say what the EGM issues are, but if the financial situation is as messed up as it sounds then they could impact on a lot of potential discussion points and make future commitments premature.

penners324

Write to every member telling them what tbe committee have said. Also call for the immediate resignation of the whole committee.

Then request a members meeting. 

Either the committee goes or the whole membership goes

Savvy_Sue

penners324 said:

Write to every member telling them what tbe committee have said. Also call for the immediate resignation of the whole committee.

Then request a members meeting. 

Either the committee goes or the whole membership goes

That's only possible if members get a membership list with contact details. But I agree it's an option, aligning with what Grumpy_chap said much ealier: 

Grumpy_chap said:

Frankly, all of this is looking really rather messy and quite likely that the club in it current form has limited life expectancy.  The more practical option might be for the 27 signatories to simply enjoy social activities together outwith the cover of the current social club. 
Are the individuals financially invested in the current social club (beyond annual membership fees)?  
Does the social club have assets that the current committee are working towards divest the membership, then wind up the social club, sell the assets, distribute amongst the last members?