Club Structures

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CLUBSTRUCTURESA Guide to Club StruCtureS for NAtioNAl leAGue

SyStem ANd other footbAll ClubS

september 2010


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Cotets

1. Itrouctio 4

2. Club Structures

Uicorporate associatios 6

Copaies liite by guaratee 7

Oter possible club structures 9

Couity Aateur Sports Club Status 10

Caritable status 12

3. Icorporatio: Step by Step 14

Appeices

1. Steps to Icorporatio 18

2. Etract ro Staarise Rules Rule 2.7 20

3. Te FA Rules I 2b a c 214. Suggeste FA Club Rules 22

Tis Guie as bee prepare by Te Football Associatio Liite i cojuctio wit Carles Russell LLP.

Te Football Associatio Liite. All rigts reserve.

Reprouctio o ay aterial ro tis publicatio is perissible oly we attribute to Te F ootball Associatio a Carles Russell LLP.

Tis Guie is believe to reect te law a practice i te area as it applie at [August 2010]. It is ot itee to be a stateet o law. It as bee writte i geeral

ters a tereore caot be relie upo to cover specic situatios; applicatio o te prici ples set out will epe upo te particu lar circustaces ivolve a

we recoe tat you obtai proessioal avice beore actig or reraiig ro actio o ay o te cotets o tis publicatio. Te Football Associatio Liite

a Carles Russell LLP accept o uty o care or li ability or ay loss occasioe, weter cause by egligece or oterwise, to ay perso actig or reraiig ro

actios as a result o ay aterial i tis pu blicatio.


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Tis Guie as bee prepare i respose to requests

by clubs or guiace i relatio to te ieret legalstructures troug wic a club ca operate. Te

Guie sets out te ost cooly use structures

tat a club ay wis to aopt togeter wit soe

avatages a isavatages o eac. Te Guie also

sets out a step by step process to be ollowe or a club

tat wises to set itsel up as a copay.

Te FA oes ot ave ay rules or requireets tat

speciy tat a club ust be oe legal or or aoter.

It is a atter or eac club to eterie te legal or

tat is best or it base o its ow circustaces. A

club soul see iepeet legal avice i relatio

to te ost appropriate structure a or tat it

soul aopt a te steps to be tae i a club is

cosierig aig ay cages to its structure

icluig but ot liite to icorporatio. Beore

aig ay structural cages te club soul give

prior otice to Te FA, a te league a couty FA

i wic its ebersip resies, i relatio to te

applicatio o ootballs rules.

FURThER InFORmATIOnAnd ASSISTAnCEI orer to assist clubs wit assessig te structures

available to te a te icorporatio process, Te

FA as wore wit law r, Carles Russell LLP, i

preparig tis avice. Carles Russell LLP is a log-

staig legal aviser to Te FA a specialises i

sports law.

Carles Russell LLP as prepare a pac o te

ocuets ecessary to icorporate your club or a

set ee. Tese ai to ae te icorporatio processas straigtorwar as possible a ca be easily

aapte or your club wit te assistace o a local

lawyer or tat o a club trustee or irector.

Alteratively, you ay wis to receive ore ivolve

assistace a avice o te optios available to your

club a wit tailorig te icorporatio or cose

structure to your club. Furter ioratio o tis a

o ow to obtai a pac o icorporatio ocuets is

available at www.chalull.co.uk/clu_ucu

mik sco

Parter, Carles Russell LLP

Eail: [email protected]

Tel: 020 7203 5069

Jon Wal

Solicitor, Carles Russell LLP

Eail: [email protected]

Tel: 020 7203 5319

mick baiki

natioal Club Services maager, Te FATel: 0844 980 8200 4593

1. Itrouctio


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Football clubs ca tae oe o several ieret legal

ors, wic are iscusse below.

Clubs ca also see ta avatages by becoig a

carity or a Couity Aateur Sports Club CASC

etails o wic are also iclue i pages 11 a 12.

1 UnInCORPORATEd ASSOCIATIOnS1.1 Introduction

Soe ootball clubs are uicorporate associatios,

soeties calle private ebers clubs.

Uicorporate associatios are a group o iiviualswo are bou togeter by te costitutio or rules o

te club. Tis eas tat te club is ot a legal perso

i its ow rigt, a so ay cotract o te club ust

be etere ito by soeoe o beal o te club.

norally a club as a coittee to ru te club a it

will be a eber or ebers o te coittee wic

will eter ito cotracts a ol la o beal o te

club. Furter guiace i relatio to uicorporate

associatios is iclue i Te FA boolet Guiace

notes or mebers Clubs/Uicorporate Etities

available ro: h://www.hfa.co/thFA/

rulandrgulaion/FArgulaion/~/dia/Fil/

pDF/thFA/GuidancNoFAU.ahx

1.2 Advantages

Uicorporate associatios are private ebers

clubs a o ot ave ay o te legal requireets

tat apply to liite copaies suc as te lig

o accouts a are ot subject to outsie scrutiy

uless tey are carities oter ta require by

law. Witi te costraits o te law, te rules or

costitutio o a uicorporate associatio ca be

watever te ebers coose, a ca usually be

easily cage by te ebers.

1.3 Disadvantages

Te ebers o te goverig coittee aveto eter ito cotracts i teir ow aes. Tis

eas tat te ebers o te coittee coul be

persoally liable i te club breaces a cotract or

i a clai is ae agaist te club a te club as

isufciet assets to eet te clai. Also, i tere is a

uisure acciet or a eployee, ofcer or player

o te club perors a act or wic te club is el

liable te possibly all o te coittee or eve all o

te ebers coul ave to pay. mebers are joitly

a severally liable or ay liabilities eaig oeeber coul be liable or all o te clubs ebts i

oter ebers caot pay. It is essetial tat were

possible isurace is purcase to cover all o te

clubs activities.

A uicorporate associatio oes ot ave a

separate legal ietity ro its ebers a so te

ebers o te goverig coittee ave to ol

ay la or ivestets o te club i teir ow ae.

Tis eas tat i te ae iiviual leaves te

club, all o te la or ivestets i teir ae eesto be traserre to soeoe else.

2. Club Structures


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1.4 Updating your club constitution

I a club wises to reai as a uicorporate

associatio, it ay wat to upate its costitutio.

As a iiu, its costitutio soul cover te

ollowig areas:

nae o te club;

Its objects;

Te ietity o te ebers a etail o te

process o becoig a eber, ow ebersip

coes to a e icluig iscipliary proceures

or suspesio or epulsio, payet o

subscriptios a cosequeces o o-payet;

Electio o te aageet coittee, ay

special roles e.g. presiet, cair, treasurer etc.,

te role o te aageet coittee aregulatios arou ow a we it eets, te

power o ebers o te aageet coittee

to bi all o te ebers o te associatio, ow

ebers o te aageet coittee ca

be reove;

Ay oter coittees tat te club as;

Rules about aageet o te clubs ba

accout a oter aces a rules about

payet o epeses i relevat;

Rules about te proceure or te club webuyig goos or services ro ebers;

how te rules ca be aee;

Wat appes to te property o te club i it

is issolve.

A set o Staar Club Rules suitable or use by a

uicorporate associatio is iclue at Appei 4

a tese are also available i Te FA haboo a

ro www.thFA.co. Te use o te Staar Club

Rules is ot aatory a it is liely tat te ajority

o club rules are ot i tis or.

2 COmPAnIES LImITEd BY GUARAnTEE2.1 Introduction

A copay liite by guaratee is a copayowe by its ebers but, ulie a uicorporateassociatio, as a separate legal ietity. Eaceber guaratees to pay a sall aout i te clubbecoes isolvet e.g. 1. Te structure is very eiblea coo aog ot-or-prot orgaisatios sucas clubs or carities were ebersip is requetlycagig. Te clubs costitutio will be set out i tearticles o associatio o te ew copay. Ote teebers elect te irectors, wo will be re-electe iaccorace wit te copays articles. Te irectorsare resposible or ruig te club. A copayliite by guaratee as o sares a will ot payay ivies to its ebers. As suc it is ot suitableor clubs seeig to tur-over a prot or its ebersas appose to aig a prot or te club itsel. Aste copay as a separate legal ietity, it ca eterito cotracts a ol la i its ow ae.

Furter ioratio ca be ou atwww.companieshouse.gov.uk

2.2 Advantages

As a copay as a separate legal ietity, i it

becoes isolvet te te ebers will ot be liableor te copays ebts oter ta te aout wiceac eber as guaratee to pay, typically 1.Tis eas tat, or eaple, i tere is a uisureacciet a te club is liable i suc circustaces,but uable to pay, te ebers a te irectors willot orally ave to pay uless tey ave broecopay law icluig, or eaple, ot acte ite best iterests o te copay. Ay la aivestets ca also be el i te ae o te clubrater ta te ebers o te coittee as is tecase or a uicorporate associatio. As a liitecopay it will be require to le accouts a etailso te irectors at Copaies house givig te clubtrasparecy to outsiers. no iiviual soul avecotrol o te club uless te articles allow.

2.3 Disadvantages

A copay as to le aual accouts, a aual retura irectors etails at Copaies house, a as tole a or tere every tie a irector is appoite orreove. Tere are es or late lig. Te irectors oa copay ave uties a resposibilities i copay

law suc as te uty to proote te success o tecopay, to act i te best iterests o te copaya to coply wit its Articles o Associatio ie tecopays costitutio. Tis ay eter ivestet

ito te club by ivestors tat ay require cotrol.


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3 OThER InCORPORATEdCLUB STRUCTURES

3.1 Companies Limited by Shares

A copay liite by sares is te sae as acopay liite by guaratee ecept tat it is

owe by te sareolers wo elect te irectors.

Copaies liite by sares are ot orally use

or clubs tat operate ebersip scees because

eac tie a eber jois a sare as to be issue to

te a eac tie a eber leaves teir sare as

to be traserre to soeboy else or reeee.

A copay liite by sares ay be suitable or clubs

wic owers or ivestors wo wis to ivest i te

club a wat to operate as a prot aig operatioas tey ca beet ro payet o ivies a

a icrease i te value o teir sares wic ca

be sol.

3.1.1 Advantages

As a copay it as a separate legal ietity, i it

becoes isolvet te te ebers will ot be liable

or te copays ebts oter ta to te etet tat

tey ave ot ully pai te copay or te sares

tat tey ol. Sares i te copay ca be bougt

a sol, subject to ay restrictios i te articleso associatio.

3.1.2 Disadvantages

I aitio to te isavatages sow i 2.3 o page

7 sares caot be avertise a sol publicly a

sares ave to be issue eac tie a ew eber

jois a traserre or reeee eac tie a

eber leaves or ies. I ayoe ols over 50% o

te sares te tey ca cotrol te boar o irectors,

a i tey ol 75% o te sares te tey are

able to cage its costitutio a are tereore icoplete cotrol o te copay.

3.2 Community Interest Company

A Couity Iterest Copay is a special type o

copay. It as a separate legal ietity a so, as

wit a copay liite by guaratee, te ebers

are protecte ro liabilities. Oly copaies caapply or Couity Iterest status, i.e. tis is ot

available to uicorporate associatios.

Couity Iterest Copaies are icorporate

i te sae way as oral copaies but ust

eostrate tat tey are actig or te beet o te

couity. may aateur ootball clubs woul be

able to eet tis test. Te costitutios o Couity

Iterest Copaies ust coply wit certai rules

wic restrict te way i wic te assets ca be

use i.e. a asset loc. Tey ave o specialta avatages.

Furter ioratio ca be ou at

www.cicregulator.gov.uk

3.2.1 Advantages

It provies a liite copay structure or a social

eterprise wit a secure asset loc a ocus o

couity beet. Te assets, i particular a grou

or traiig grou, are protecte a i it is wou up,

ay resiual assets, ater satisyig its creitors, willbe traserre to aoter asset-loce boy, suc as a

carity or aoter Couity Iterest Copay.

3.2.2 Disadvantages

Tere are o ta relies, but tere is aitioal

regulatio ro te Regulator o Couity Iterest

Copaies icluig a requireet to prouce a

aual couity beet report wic is publicly

available. Couity Iterest Copaies ave

oly recetly bee available a are still relatively

rare. A copay liite by guaratee ay be orestraigtorwar a ceaper to aiister a ore

ailiar to bas, local autorities, accoutats etc.


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3.3 Charitable Incorporated Organisations

Caritable Icorporate Orgaisatios are a propose

ew or o caritable copay wic is epecte to

becoe available at te e o 2010, but tey ave

alreay bee elaye cosierably a coul beagai. Carities wic opt or a corporate structure at

te oet ave to set up as a copay liite by

guaratee uer copay law. Tis eas tat tey are

subject to ual regulatio by te Carity Coissio a

Copaies house. I ligt o tis, ay i te caritable

sector ave log epresse a esire or a corporate

structure specically esige to eet te ees o

carities, a regulate oly by te Coissio.


www.charity-commission.gov.uk

3.3.1 Advantages

We lauce te Caritable Icorporate Orgaisatios

will be able to aopt a very eible corporate structure

but just report to te oe regulatory boy, te Carity

Coissio. Te carity will ave all te avatages

o icorporatio etioe above, as well as all te ta

beets o beig a carity.

3.3.2 Disadvantages

We tey o coe ito orce, a isavatage o usigte will be tat tey are ew a uailiar to bas,

local autorities, accoutats etc, a uteste i practice.

Tis ay ea icrease tie a costs or a club, a

soe ris, at least i te early stages. I aitio, caritable

status eas o course a sigicat restrictio i

peritte activities as well as a asset loc see sectio 5.

3.4 Industrial & Provident Society

A IPS is a orgaisatio registere wit te Fiacial

Services Autority wic coucts a iustry busiess

or trae. A IPS ca eiter be a cooperative, ru or te

beet o its ebers, or a couity beet society,wic is ru or te beet o te wier couity. A

copay ca covert ito a IPS or a ew IPS ca be

set up.


www.sa.gov.uk

3.4.1 Advantages o an IPS which is a Cooperative

A cooperative is a eible legal structure wic ca ru a

ootball club a as a separate legal ietity, so tat i it

becoes isolvet te te ebers will ot be liable orte co-operatives ebts.

3.4.2 Advantages o an IPS which is a CommunityBeneft Society

A Couity Beet Society is a eible legal

structure wic ca ru a ootball club a as a

separate legal ietity, so tat i it becoes isolvet

te te ebers will ot be liable or te co-

operatives ebts. It as a social objective o beettig

te couity, a its assets are protecte so tat i

te Society is wou up, te assets will be applie orte beet o te couity.

3.4.3 Disadvantages o an IPS which is aCooperative or a Community Beneft Society

A ee ro 40 - 950 is payable o establiset,

wit te ee level epeat o te ratig o te

costitutio, a aual ees are also payable.

Oly tose clubs wic ca eostrate tat tere

is a reaso wy tey soul be a IPS istea o a

copay will be peritte to register by te FSA.

Tere is ucertaity as to wo is goig to regulate IPSs

i te uture, a wat ipact tis ay ave o aual

ees a reportig requireets.

For ost clubs, a copay liite by guaratee

ay be ore straigtorwar, ceaper to aiister

a ore ailiar to bas, local autorities,

accoutats etc.


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4 COmmUnITY AmATEUR SPORTSCLUB STATUS (CASC)

Followig Goveret a Carity Coissio

cosultatio i 2001 ew legislatio was itrouce

proviig couity base aateur sports clubs

wit a opportuity to tae avatage o valuable

ta relies by registerig as a Couity Aateur

Sports Club CASC wit te Ila Reveue ow hm

Reveue & Custos.


www.cacinfo.gov.uk icluig ow to register as

a CASC.

4.1 Can my club become a Community Amateur

Sports Club?Uicorporate associatios, copaies liite

by guaratee a couity beet societies ca

becoe a CASC. To qualiy as a CASC, a club ust, as

its ai purpose, provie acilities or a proote

participatio i oe or ore eligible sports. A club is

eligible i it eets te ollowig criteria, or is willig to

cage its costitutio so tat it will eet te criteria:

Ope to all o te couity;

mai purpose o te club is to proote sport;

Te club is aateur a o-prot aig. Tiseas tat it caot pay its players; a

I te club is wou up, its property will be

istribute to a sports goverig boy, aoter

CASC or a carity.

4.2 Advantages

Local Autority busiess rate relie o at least 80% is

available to a CASC, wit soe Local Autorities givig

100% relie.

Git Ai ca be claie o oatios ro iiviualsto te club but ot o ebersip ees.

Eve i your club oest ow its ow acility, it ca still

beet ro Git Ai. Git Ai eas te Goveret

as 28.5p to every 1 receive as a oatio to a

carity or CASC.

CASCs are eept ro various taes icluig taes

o te clubs uraisig or traig turover suc as

receipts ro a bar or sales o brae clotig i tey

are uer 30,000. Tey o ot pay ta o iterest

eare i ba accouts a o ieritace ta is

payable o legacies let to a CASC.

4.3 Disadvantages

A club ust register wit hmRC. norally tis ivolves

cagig te clubs costitutio. Oce it as becoe a

CASC, a club caot uo te process.

Te club ust cotiue to coply wit CASC rules

as to, aogst oter tigs, te criteria set out i

paragrap 4.1. Tis copliace will ee to be uer

cotiuous review, particularly as te club progresses

or grows, a a serious trasgressio o CASC status

coul lea to a ivestigatio by hmRC ito claie

ta relie.

Te club ust allow ayboy to becoe a eber,

uless tey woul be a isruptive iuece or te

level o acilities eas tat te club caot pysicallyaccept ay ore ebers. I te club as two or ore

classes o eber te te club ust allow ayboy

to becoe te class o eber wic ejoys te ai

votig rigts.

Te clubs ust be aateur tereore players caot

be pai, altoug tey ca receive teir epeses.

Clubs wisig to progress troug te natioal League

Syste a ultiately pay players ee to careully

cosier teir log ter plas a weter registerig

as a CASC will iibit teir log ter evelopet.


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5 ChARITABLE STATUS5.1 Can my club become a charity?

Uicorporate associatios, copaies liite by

guaratee a couity beet societies ca be

carities. A Caritable Icorporate Orgaisatio ust

be a carity.

A club will orally ave to ae its costitutio

beore it becoes a carity, as it ust ave objects

wic are eclusively caritable i law. It will oly be

caritable i it prootes aateur ootball a/or

oter ealty aateur recreatios e.g. by proviig

acilities, or prootes eucatio or couity

participatio by reerece to sport. I all cases te club

ust eist or te public beet.5.2 Advantages

Carities ave ore ta avatages ta CASCs.

Tey ave ull eeptio ro ta o prots tat tey

ay ae ro teir ebersip ees, ba iterest

or ivestet icoe. Git ai ca be claie o

oatios ro copaies as well as oatios ro

iiviuals. Local autority busiess rate relie is te

sae as or CASCs, a tere is siilarly o ieritace

ta payable o legacies let to carities.

People are ore willig to uraise or a carity, acarities are allowe to ru certai types o lottery a

oter uraisig activities tat are bae or licese

or o-carities.

5.3 Disadvantages

Oce a club as becoe a carity, it caot stop beig

a carity.

All ebers o te club ust be playig ebers,

it caot ave social ebers. Players ust be

aateur a ay ot be pai.

Te club ust ave ebersip ope to all. Altoug

tere ca be copetitio to get ito, or eaple, te

rst tea, everyboy ust ave a equal opportuity

to use te clubs acilities. Te level o ees ust be low

eoug so tat everyoe as te opportuity to joi

te club.

A subsiiary copay soul be set up to ru ay

bar tat te club as, but tis is ot ifcult to o. Ay

prots ro te bar ca be pai uer git ai to te

carity to avoi payet o corporatio ta by te

subsiiary.

A carity ust register wit te Carity Coissio

i its aual icoe is over 5,000. Tis eas tat it

ust subit aual accouts a a aual retur to

te Coissio. It ust also coply wit carity law,

altoug tere is a lot o guiace o te Coissioswebsite www.chaiycoiion.gov.uk to elp

clubs to coply wit tese requireets.

6 WhAT IS ThE BEST STRUCTUREFOR mY CLUB?

It is a atter or eac club to eterie te ost

suitable legal or base o its circustaces. Clubs

soul cosult wit teir proessioal avisors i tis

respect a see iepeet legal avice

Sall clubs ay ot wat to icur te epese o

cagig teir status. however, tey soul cosier

registerig as a CASC i tey ow la or ay receive

oatios ro ebers so as to beet ro te ta

relies available to a CASC See 4.2 or etails.

Clubs eve relatively sall oes ay wis to pay

te oe-o cost o cagig ro a uicorporate

associatio to a copay liite by guaratee

because o te avatages liste, especially acquirig

legal ietity a protectig ebers ro possibleliabilities. Tey soul also cosier registerig te

copay as a CASC i tey ow la or ay receive

oatios ro ebers, a tey soul also

cosier te beets o becoig a carity.

Ay club wic receives substatial oatios ro

copaies oatios o ot iclue sposorsip

payets soul cosier te beets o becoig a

carity, or eaple, taig avatage o te Git

Ai scee.


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I you ecie tat you woul lie to aopt a ew

structure or your club, tis sectio o te Guiesets out te proceure or oig so. I all cases, tis

proceure will be epeet o: a te ew structure

wic you ave cose; a b te curret status

o te club, icluig its assets a liabilities. Tis is

soetig tat you soul iscuss wit your clubs

proessioal avisors. however, te guiace i tis

sectio provies a geeric overview o te steps tat

will ee to be tae.

A overview o te process is set out i te cart i

Appei 1.

1 nOTIFICATIOnA clubs rigt to play ootball is troug its olig

o te relevat ootball ebersips. I a club is

cosierig icorporatig te tese ebersips

will ave to be traserre ro te uicorporate

associatio to te ew liite copay. Te club

soul otiy Te FA, te league o wic it is a

eber a its couty FA o its itetios at a early

stage o te process or guiace i relatio to ay o

ootballs rules tat ee to be ollowe. A eaple

o tis is iclue i Appei 2, Rule 2.7 o te

Staarise Rules tat apply to clubs playig at Steps

1 to 6 o te natioal League Syste.

2 InTERnAL CLEARAnCEYou will ee to obtai ay iteral approvals require

by te clubs curret costitutio prior to establisig

a ew etity. Tis will ier a will ee to be

eterie o a case by basis but is liely to iclue

olig a geeral eetig o te clubs ebers.

3 STEERInG GROUPTe club ay wis to or a Steerig Group tat is

tase by its Coittee to aage te process o

icorporatig te club.

4 FORmATIOn OF A nEW LEGAL EnTITYhavig obtaie require iteral approvals, te

rst legal step will be to set up te ew legal etity

wic te club is aoptig. Were te club is

establisig itsel as liite copay i.e. a copay

liite by sares or by guaratee, tis will be verystraigtorwar a quic as tere are o approval

processes or urles to be satise. Were IPS

caritable or Couity Aateur Sport Club status

is cose, te tierae will be soewat loger as

tere are certai registratios or approvals tat ee

to

be obtaie.

Limited Companies

It will be ecessary to se te ollowig ocuets to

Copaies house: For In01 Applicatio or Registratio

meorau o Associatio

Articles o Associatio

Te eorau a articles o associatio are

cosiere urter uer paragrap 5 below. Full

etails o copletio o te For In01 is beyo

te scope o tis Guie: owever, it requires te

copletio o ioratio about te propose

copay ae, te type o copay, te registere

ofce, irectors a secretary, stateet o capital aiitial sareoligs a a stateet o copliace.

3. IcorporatioStep by Step


15/3015

Te copay will coe ito eistece we te

Registrar o Copaies issues a certicate o

icorporatio. Te staar service taes 7 ays

ee o 20; a epress service witi 24 ours is

available ee o 50; or te applicatio ca be aeelectroically 15 staar service, 30 or 24 ours.

Alteratively te club ay coose to use its

proessioal avisors or a copay oratio aget i

establisig te copay. Carles Russell LLP is able

to provie a variety o services epeig o wat

is suitable or te size a ature o te club. Furter

ioratio o te support available a wo to

cotact at Carles Russell LLP is set out i Sectio 1.

Other StructuresI te case o Couity Iterest Copaies, te

Club will ee to pass a test eostratig tat

its activities are or te beet o te couity

or a sectio o te couity. It will tereore be

ecessary to apply to te Regulator o Couity

Iterest Copaies to obtai tis approval usig

a For CIC36 togeter wit te oter ocuets

outlie above. Wile te Regulator cosiers te

applicatio, te icorporatio o te copay will be

el up a caot tereore be eecte i 24 ours.

5 nEW COnSTITUTIOnMemorandum and Articles o Association

or a Company

Te ew copay will ee to ave a costitutio

i.e. legal ocuets i te or o a eorau a

articles o associatio establisig te copay a

settig out rules goverig its aiistratio

a operatio.

Te eorau is a sort ocuet settig outte subscribers to te copay a its sare capital

i ay.

Te articles o associatio are ore etaile a

regulate te sare capital i ay o te copay,

te boar a sareoler/eber powers. dieret

approaces ca be tae towars te coice o articles

o associatio, altoug all ust cotai te provisios

o Te FA Rules I 2b a c o irectors actig i

copliace wit Te FAs Rules a regulatios a

regarig te istributio o assets o wiig upte copay see Appei 3.

A geeric articles o associatio as bee prepare

suitable or ost clubs as part o te pacage oere by

Carles Russell LLP. Tese ca be aopte wit ior

aeet as require to suit particular circustaces.

Tese woul te ee to be suppleete by separatebye-laws o te club settig out i etail te ecisio-

aig process see urter below. Alteratively, te

articles o associatio ca be tailore or your club. Please

see urter i Sectio 1 o ow to obtai articles o

associatio a avice o tese.

Bye-laws

Wile te articles o associatio set out te ig level

rules a regulatios or aiistratio o te club, te

aoptio o separate bye-laws are recoee i

orer to establis i ore etail suc atters as:

Te uber o a qualicatios require

or irectors;

Operatio o te ba accouts;

Ters o reerece or coittees a

sub-coittees;

Powers a ters o reerece o te boar;

Arrageets or mebers eetigs;

Votig a proy proceures;

mebersip categories a subscriptios;

Reportig processes.

It is liely tat te club alreay as a costitutio or

rules ealig wit tese atters. I tat is te case a

tese reai sufciet, tese ca siply be aopte

by te ew etity as its bye-laws.

Community Amateur Sports Club

I your club wises to becoe a couity aateur

sports club te its ew costitutio ust eet

certai requireets. Tese are set out above i

sectio 2. It is possible to se a rat ew costitutioto hm Reveue a Custos or teir opiio about

weter te rat is copliat.

Charity

I your club wises to becoe a carity te its ew

costitutio will ave to be rate to coply wit

certai legal requireets, so tat it will be acceptable

or registratio wit te Carity Coissio. It ust be

set up or wolly caritable purposes, a tere ust

be certai liits o payets ae to its irectors a

ebers. Te Carity Coissio oes ot orallygive a opiio o rat costitutios, a so it is

avisable to use te Carity Coissios preceet

ro its website www.chaiy-coiion.gov.uk or

to see legal avice.


16/3016

6 mAnAGEmEnTA critical part o settig up te ew etity or your

club will be eteriig te boar or coittee

ebersip a geeral goverace structure or

your club.

A liite copay ust ave at least oe irector

wo is a atural perso i.e. ot a corporate irector,

altoug typically it is recoee avig at

least two irectors to or a boar o irectors. I te

club is a carity te it will orally ave to ave at

least tree irectors. Te copay ay also ave a

secretary, altoug tis is o loger strictly require by

law. Agai, owever, we woul recoe oiatig

a secretary.You are ree to eterie ow you wis your club to

be aage. Te siplest approac is to leave all

ecisios to te boar o irectors to eterie o a

ajority vote basis. Tis is reecte i our specie

articles o associatio. I esire, it is possible to

elegate power to aageet coittees, or

oter sub-coittees, or to allow ebers to

participate i certai ecisio aig processes i

geeral eetigs.

Watever ecisio is tae, tis soul be reecte ite clubs bye-laws see 5. new Costitutio.

7 GEnERAL mEETInGS And nOTIFICATIOnOF dECISIOn TO STAkEhOLdERS

It is liely tat your club ols geeral eetigs o its

ebers o a aual basis or ore requetly. Tere

is o loger a legal obligatio or copaies to ave

aual geeral eetigs, but you soul cosier

urig te icorporatio process weter tere soul

be, wat powers tose geeral eetigs soulave, a wo soul be etitle to atte. Tis

will be reecte i te clubs articles o associatio

a bye-laws.

FA Rule I1ciii requires a club to ave its aual

accouts lai beore te ebers o te club at a

geeral eetig.

havig tae te ecisio to establis a ew etity, it

is avisable to call a geeral eetig a otiy ay

ey staeolers i te club as to te ecisio a tooutlie ey iereces goig orwar.


17/3017

8 TRAnSFER OF ASSETS And LIABILITIESOce te ew legal etity as bee ore, it will be

critical to esure tat all assets a liabilities o its

preecessor are traserre to te ew etity i.e.

aytig wic was owe or owe by te club ust

be traserre ito te ae o te ew etity o a

certai ate or ates.

Tere is a wie rage o assets a liabilities tat

ees to be cosiere, icluig:

1. Sta a eployees;

2. Equipet a aciery;

3. Preises;

4. Cotracts, e.g. supplier cotracts, isurace etc;

5. Ivestets;

6. Ba overrat acilities, loas, ortgages;

7. Boo ebts;

8. Itellectual property i te club,

e.g. its ae a logo;

9. FA registratio, league registratio a Couty

FA ebersip.

It will, tereore, be ecessary to assess a puttogeter a list o te clubs assets a liabilities. Oce

copile, tese will ee to be traserre to te ew

etity by eas o a asset traser agreeet. Te

agreeet will also cover suc issues as we a

wat aouceets ca be ae, weter tere are

ay coitios to be ullle beore te trasactio

ca be coplete, or ay cosets to be obtaie. A

ey coitio to be iclue witi te agreeet is

tat writte ootball autority FA, league a couty

FA coset as bee obtaie prior to te trasactiobeig able to coplete. It is essetial tat clubs obtai

legal avice beore atteptig to traser teir assets

a liabilities.

9 TAxATIOn CLEARAnCESI a club wises to register as a Couity Aateur

Sports Club, it will ee to apply to hmRC, wic

rus te ollowig elplie uber: 08453 020203.

Te applicatio or is available ro its website,

www.hmrc.gov.uk/charities, a will ee to be

accopaie wit a copy o te clubs costitutio.

I a club aes its costitutio to becoe a carity,

te it will orally ee to register wit te Carity

Coissio to obtai a carity registratio uber.

www.hmrc.gov.uk/charities

I a club as a aual icoe o uer 5,000

te it will ot be able to register wit te Carity

Coissio. It will ee to register istea wit hmRCCarities usig te website aress a telepoe

uber above.


18/3018

Appei 1

Approac ootball autorities i relatio

to te propose icorporatio

Iteral noticatio: obtai iteral club clearace a tae ecisio

to set up ew etity e.g. cosult club ebers a vote

Eteral noticatio: to Te FA, League a Couty FA

Icorporate ew legal etity:-

- For In01

- meorau o Associatio

- Articles o Associatio

Aopt bye-laws or ew legal etity

Traser assets a liabilities to ew etity ater

obtaiig ootball autority approval

Taatio clearace

Iteral a Eteral noticatio o ew structure

STEPS TO InCORPORATIOn


19/3019


20/3020

Appei 2

Etract ro te Staarise Rules or use by all

copetitios at Steps 1 to 6 iclusive o te natioalLeague Syste.

RULE 2.7Transer o Membership Transer as aGoing Concern

2.7.1 I te evet tat ay club wic resolves to

traser its ebersip o te Copetitio ro oe

legal etity to a ieret legal etity, oter ta i te

circustaces sow at 2.7.2 below, te Boar will use

te ollowig iiu criteria i eciig weter toapprove tat traser:

a Te sareolers or ebers o te club ave

vote to agree to te traser o te clubs

ebersip to te ew etity.

b All Football Creitors i te club ust be pai i ull

or traserre i ull wit eac creitors coset

to te ew etity, a eviece as suc.

c All oter creitors i te club ust be pai i ull or

Secure or traserre i ull wit eac creitorscoset to te ew etity a eviece as suc.

Te propose ew etity as provie acial

orecasts to te FA a te Copetitio sowig

its ability to u te club or te et twelve 12

ots or to te e o te Playig Seaso ollowig

traser wicever is te loger a tat eviece

o uig sources as bee provie.

e Te FA ust ave give approval or te traser to

tae place.


21/3021

Appei 3

FA RULE I 2(B)(C) PROVISIOnS RELATInGTO CLUBS2 (a) General Provisions

A Club sall iclue te ollowig provisios i its

Articles o Associatio were a corporate boy or

Club rules were a uicorporate associatio:

i Te ebers a te irectors o te Copay

sall so eercise teir rigts, powers a uties a

sall were appropriate use teir best eeavours to

esure tat oters couct teselves so tat te

busiess a aairs o te Copay are carrie outi accorace wit te Rules a regulatios o Te

Football Associatio Liite or te tie beig i orce.

ii no propose alteratio to te provisios set out erei

sall be eective uless te propose alteratio as

bee approve i writig by Te Football Associatio

Liite 14 ays or ore beore te ay o wic te

alteratio is propose to tae place.

iii Te ofce o a/a director/Ofcer or Ofcial* sall

be vacate i suc perso is subject to a ecisio

o Te Football Associatio Liite tat suc

perso be suspee ro olig ofce or ro

taig part i ay ootball activity relatig to te

aiistratio or aageet o a ootball club.

(b) Club Companies Winding Up Provisions

A Club wic is icorporate uer te Act sall avete ollowig provisios i its Articles o Associatio:

O te wiig-up o te Copay te surplus assets

sall be applie, rst, i repayig te mebers te

aout pai o teir sares respectively. I suc assets

are isufciet to repay te sai aout i ull, tey

sall be applie rateably, so tat te loss sall all upo

te mebers i proportio to te aout calle up o

teir sares respectively. no meber sall be etitle

to ave ay call upo oter mebers or te purpose

o ajustig te mebers rigts; but were ay callas bee ae a as bee pai by soe o te

mebers suc call be eorce agaist te reaiig

mebers or te purpose o ajustig te rigts o te

mebers betwee teselves. I te surplus assets

sall be ore ta sufciet to pay to te mebers

te wole aout pai upo teir sares, te balace

sall be give by te mebers o te Club, at or beore

te tie o issolutio as tey sall irect, to Te

Football Associatio Beevolet Fu, or to soe

Club or Istitute i te [ere isert te ae o te

appropriate city or couty] avig objects siilar

to tose set out i te meorau o Associatio

or to ay local carity, or caritable or beevolet

istitutio situate witi te sai [ere isert te

ae o te appropriate city or couty]. I eault o

ay suc ecisio or apportioet by te mebers

o te Club, te sae to be ecie upo a

apportioe by a Juge o te hig Court o Justice

avig jurisictio i suc wiig-up or issolutio

a as e sall eterie. Alteratively suc balace

ay be ispose o i suc oter aer as temebers o te Club ay, wit te writte coset o

Te Football Associatio Liite, eterie.

*delete as appropriate.


22/3022

Were a Club is registere as a Couity Iterest

Copay uer te Act or as a Iustrial a

Proviet Society wit Te Fiacial Services

Autority, it sall iclue all o te above provisios

i its Articles o Associatio or rules. Soul teseprovisios ot be acceptable to te relevat Regulator,

ay propose variatio ro te above provisios

ust receive prior writte approval ro Te

Associatio. Te Associatio will cosier ay suc

variatios o a case by case basis.

note

Rule I 2 B a C as bee rate or use by

copaies liite by sares. Ay variatios ro Rule

I 2 B a C or clubs tat wis to aopt a ieretstructure suc as a copay liite by guaratee or

to register as a CIC or a IPS will be cosiere o a

case by case basis. Clubs soul cotact te Fiacial

Regulatio dept at Te FA or urter irectio.


23/3023

SUGGESTEd FA CLUB RULES FORUnInCORPORATEd ORGAnISATIOnS1. Name

Te Club sall be calle .................................... te Club.

2. Objects

Te objects o te Club sall be to provie acilities,

proote te gae o Associatio Football, to arrage

atces a social activities or its ebers, a

couity participatio i te sae.

3. Status o Rules

Tese Rules te Club Rules or a biig

agreeet betwee eac eber o te Club.

4. Rules and Regulations

a Te ebers o te Club sall so eercise

teir rigts, powers a uties a sall, were

appropriate, use teir best eeavours to esure

tat oters couct teselves so tat te busiess

a aairs o te Club are carrie out i accorace

wit te Rules a Regulatio o Te Football

Associatio Liite Te FA, Couty Football

Associatio to wic te Club is afliate Paret

Couty Associatio a Copetitios i wic te

Club participates, or te tie beig i orce.

b no alteratio to te Club Rules sall be eective

witout writte approval by te Paret Couty

Associatio. Te FA a te Paret Couty

Associatio reserve te rigt to approve ay

propose cages to te Club Rules.

c Te Club will also abie by Te FAs Saeguarig

Cilre Policies a Proceures, Coes oCouct a te Equal Opportuities a Ati-

discriiatio Policy as sall be i place ro tie

to tie.

5. Club Membership

a Te ebers o te Club ro tie to tie sallbe tose persos liste i te register o ebers

te mebersip Register wic sall be

aitaie by te Club Secretary.

b Ay perso wo wises to be a eber ust apply

o te mebersip Applicatio For a eliver

it to te Club. Electio to ebersip sall be at

te iscretio o te Club Coittee a grate

i accorace wit te ati-iscriiatio a

equality policies wic are i place ro tie to

tie. A appeal agaist reusal ay be ae to te

Club Coittee i accorace wit te Coplaits

Proceure i place ro tie to tie. mebersip

sall becoe eective upo a applicats ae

beig etere i te mebersip Register.

c I te evet o a ebers resigatio or

epulsio, is or er ae sall be reove ro

te mebersip Register. Te FA a Paret

Couty Associatio sall be give access to te

mebersip Register o ea.

6. Annual Membership Fee

a A aual ee payable by eac eber sall

be eterie ro tie to tie by te Club

Coittee a set at a level tat will ot pose a

sigicat obstacle to couity participatio.

Ay ee sall be payable o a successul

applicatio or ebersip a aually by eac

eber. Fees sall ot be repayable.

b Te Club Coittee sall ave te autority to

levy urter subscriptios ro te ebers asare reasoably ecessary to ull te objects o

te Club.

Appei 4


24/3024

7. Resignation and Expulsion

a A eber sall cease to be a eber o te Club

i, a ro te ate o wic, e/se gives otice

to te Club Coittee o is / er resigatio. A

eber wose aual ebersip ee or urtersubscriptio is ore ta two 2 ots i arrears

sall be eee to ave resige.

b Te Club Coittee sall ave te power to epel

a eber we, i its opiio, it woul ot be

i te iterests o te club or te to reai a

eber. A appeal agaist suc a ecisio ay

be ae to te Club Coittee i accorace

wit te Coplaits Proceure i orce ro tie

to tie.

c A eber wo resigs or is epelle sall ot be

etitle to clai ay, or ay sare o, ay, o te

icoe a assets o te Club te Club Property.

8. Club Committee

a Te Club Coittee sall cosist o te ollowig

Club Ofcers: Cairperso, Vice Cairperso,

Treasurer, Secretary, miutes Secretary a up to

ve 5 oter ebers, all electe at a Aual

Geeral meetig AGm.

b Eac Club Ofcer a Club Coittee meber

sall ol ofce ro te ate o appoitet

util te et AGm uless oterwise resolve at

a Etraoriary Geeral meetig EGm. Oe

perso ay ol o ore ta two 2 positios o

Club Ofcer at ay tie. Te Club Coittee sall

be resposible or te aageet o all te aairs

o te Club. decisios o te Club Coittee sall

be ae by a siple ajority o tose atteig

te Club Coittee eetig. Te Cairperso o

te Club Coittee eetig sall ave a castigvote i te evet o a tie. meetigs o te Club

Coittee sall be caire by te ................................. ,

or i teir absece te ............................... Te quoru

or te trasactio o te busiess o te Club

Coittee sall be tree 3.

c decisios o te Club Coittee sall be etere

ito te miute Boo o te Club to be aitaie

by te Club Secretary.

Ay eber o te Club Coittee ay call aeetig o te Club Coittee by givig ot less

ta seve ays otice to all ebers o te Club

Coittee. Te Club Coittee sall ol ot less

ta our 4 eetigs per year.


25/3025

e A outgoig eber o te Club Coittee ay

be re-electe. Ay vacacy o te Club Coittee

wic arises betwee AGms sall be lle by a

eber propose by oe 1 a secoe by

aoter oe 1 o te reaiig Club Coitteeebers a approve by siple ajority o te

reaiig Club Coittee ebers.

Save as provie or i te Rules a Regulatios

o Te FA, te Paret Couty Associatio a ay

applicable Copetitio, te Club Coittee sall

ave te power to ecie all questios a isputes

arisig i respect o ay issue cocerig te

Club Rules.

g Te positio o a Club Ofcer sall be vacate isuc a perso is subject to a ecisio o Te FA

tat suc perso be suspee ro olig ofce

or ro taig part i ay ootball activity relatig

to te aiistratio or aageet o a

ootball club.

9. Annual and Extraordinary General Meetings

a A AGm sall be el i eac year to:

i receive a report o te activities o te Club over

te previous year;

ii receive a report o te Clubs aces over te

previous year;

iii elect ebers o te Club Coittee; a

iv cosier ay oter busiess.

b noiatios or electio o ebers as Club

Ofcers or as ebers o te Club Coittee sall

be ae i writig by te proposer a secoer,

bot o wo ust be eistig ebers o te

Club, to te Club Secretary ot less ta 21 aysbeore te AGm. notice o ay resolutio to be

propose at te AGm sall be give i writig to

te Club Secretary ot less ta 21 ays beore

te meetig.

c A EGm ay be calle at ay tie by te Club

Coittee a sall be calle witi 21 ays o

te receipt by te Club Secretary o a requisitio

i writig, sige by ot less ta ve ebers,

statig te purposes or wic te meetig is

require a te resolutios propose. Busiessat a EGm ay be ay busiess tat ay be

trasacte at a AGm.

Te Secretary sall se to eac eber at teir

last ow aress writte otice o te ate o

a Geeral meetig weter a AGm or a EGm

togeter wit te resolutios to be propose at

least 14 ays beore te eetig.

e Te quoru or a Geeral meetig sall be

......................................................................................................

Te Cairperso, or i teir absece a eber

selecte by te Club Coittee, sall tae te

cair. Eac eber preset sall ave oe vote

a resolutios sall be passe by a siple

ajority. I te evet o a equality o votes, te

Cairperso o te meetig sall ave a

castig vote.g Te Club Secretary, or i teir absece a eber

o te Club Coittee, sall eter te miutes o

Geeral meetigs ito te miute Boo o te Club.

10. Club Teams

At its rst eetig ollowig eac AGm , te Club

Coittee sall appoit a Club eber to be

resposible or eac o te Clubs ootball teas. Te

appoite ebers sall be resposible or aagig

te aairs o te tea. Te appoite ebers sall

preset to te Club Coittee at its last eetig prior

to a AGm a writte report o te activities o te tea.

11. Club Finances

a A ba accout sall be opee a aitaie

i te ae o te Club te Club Accout.

desigate accout sigatories sall be te Club

Cairperso, te Club Secretary a te Club

Treasurer. no su sall be raw ro te Club

Accout ecept by ceque sige by two o te

tree esigate sigatories. All oies payable

to te Club sall be receive by te Treasurer a

eposite i te Club Accout.

b Te Club Property sall be applie oly i

urterace o te objects o te Club. Te

istributio o prots or proceeigs arisig ro

te sale o Club Property to ebers is proibite.

c Te Club Coittee sall ave te power to

autorise te payet o reueratio a

epeses to ay eber o te Club altoug a

Club sall ot reuerate a eber or playiga to ay oter perso or persos or services

reere to te Club.


26/3026

Te Club ay provie sportig a relate social

acilities, sportig equipet, coacig, courses,

isurace cover, eical treatet, away atc

epeses, post-atc reresets a oter

oriary beets o Couity Aateur SportsClubs as provie or i te Fiace Act 2002.

e Te Club ay also i coectio wit te sports

purposes o te Club:

i sell a supply oo, ri a relate sports

clotig a equipet;

ii eploy ebers altoug ot or playig

a reuerate te or proviig goos

a services, o air ters set by te Club

Coittee witout te perso cocerebeig preset;

iii pay or reasoable ospitality or visitig teas

a guests; a

iv ieiy te Club Coittee a ebers

actig properly i te course o te ruig

o te Club agaist ay liability icurre i te

proper ruig o te Club but oly to te etet

o its assets.

Te Club sall eep accoutig recors orrecorig te act a ature o all payets a

receipts so as to isclose, wit reasoable accuracy,

at ay tie, te acial positio, icluig te

assets a liabilities o te Club. Te Club ust

retai its accoutig recors or a iiu o si

6 years.

g Te Club sall prepare a aual Fiacial

Stateet i suc orat as sall be available

ro Te FA ro tie to tie. Te Fiacial

Stateet sall be verie by a iepeet,

appropriately qualie accoutat a sall be

approve by ebers at a Geeral meetig. A

copy o ay Fiacial Stateet sall, o ea,

be orware to Te FA.

Te Club Property, oter ta te Club Accout,

sall be veste i ot less ta two 2 a ot

ore ta our 4 custoias, oe o wo sall

be te Treasurer te Custoias, wo sall eal

wit te Club Property as irecte by ecisios o

te Club Coittee, a etry i te miute Boo

sall be coclusive eviece o suc a ecisio.

i Te Custoias sall be appoite by te Club i a

Geeral meetig a sall ol ofce util eat or

resigatio uless reove by a resolutio passe

at a Geeral meetig.

j O teir reoval or resigatio, a Custoia sall

eecute a Coveyace i suc or as is publise

by Te FA ro tie to tie to a ewly electe

Custoia or te eistig Custoias as irecte

by te Club Coittee. Te Club sall, o request,

ae a copy o ay Coveyace available to Te

FA. O te eat o a Custoia, ay Club Property

veste i te sall vest autoatically i te

survivig Custoias. I tere is oly oe survivig

Custoia, a EGm sall be covee as soo as

possible to appoit aoter Custoia.

Te Custoias sall be etitle to a ieity

out o te Club Property or all epeses a oter

liabilities reasoably icurre by te i carryig

out teir uties.

12. Dissolution

a A resolutio to issolve te Club sall oly be

propose at a Geeral meetig a sall be carrie

by te ajority o at least tree-quarters o te

ebers preset.

b Te issolutio sall tae eect ro te ate

o te resolutio a te ebers o te Club

Coittee sall be resposible or te wiig up

o te assets a liabilities o te Club.

c Ay surplus assets reaiig ater te iscarge

o te ebts a liabilities o te Club sall be

traserre to aoter Club, a Copetitio, te

Paret Couty Associatio or Te FA or use by

te relate to couity sports.


27/3027


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30/30

The Football Association

Wly sadiu,

Wly,

London HA9 0Ws

Postal Address:

th Fooall Aociaion

Wly sadiu,

pO box 1966,London sW1p 9eQ

Visit:

www.thFA.co/YouGa

Documents

Club Structures