Brisbane Forum Members Need Legal Input

[kierank]

Hi,

Last night about 17 Forum members (including Ian Somers, Asy, Sunstone plus others) participated in a "formation meeting" for the Brisbane Investing Group (BIG for short). It was decided by the group that BIG meetings:

1. Would be held monthly,

2. Are aimed at providing a networking opportunity for like-minded people interesting in investing with the main focus on property,

3. Will endeavour to source external as well as internal speakers, run panel sessions and hold debates,

4. Attendance would be at no cost (although a gold coin donation would be welcome to cover incidentals such as tea, coffee, etc).

5. A Co-ordinating Committee (Asy, Sunstone and myself) was elected to oversee the group's formation and growth for the first year.

In these days of increasing litigation, the group has asked me (there were no legal people present) to explore any risks/issues the group could be exposed to. We do not want BIG, its Co-ordinating Committee nor its members to be exposed to any legal claims. Hence, we would appreciate any input on the following:

a. Should BIG have a "disclaimer" advising all meeting participants that BIG, its Co-ordinating Committee and its members are liable for any information/advice they hear/read at BIG events. If yes, suggested wording for the disclaimer would be appreciated.

b. Should BIG have Public Liability insurance? If yes, any suggestion/recommendation on possible providers would be appreciated.

c. Should Big be incorporated to protect its Co-ordinating Committee and its members?

Any other thoughts, comments, feedback would be gratefully appreciated.

Regards,

KieranK

 

[NigelW]

Originally posted by kierank
Hi,

Last night about 17 Forum members (including Ian Somers, Asy, Sunstone plus others) participated in a "formation meeting" for the Brisbane Investing Group (BIG for short). It was decided by the group that BIG meetings:

1. Would be held monthly,

2. Are aimed at providing a networking opportunity for like-minded people interesting in investing with the main focus on property,

3. Will endeavour to source external as well as internal speakers, run panel sessions and hold debates,

4. Attendance would be at no cost (although a gold coin donation would be welcome to cover incidentals such as tea, coffee, etc).

5. A Co-ordinating Committee (Asy, Sunstone and myself) was elected to oversee the group's formation and growth for the first year.

In these days of increasing litigation, the group has asked me (there were no legal people present) to explore any risks/issues the group could be exposed to. We do not want BIG, its Co-ordinating Committee nor its members to be exposed to any legal claims. Hence, we would appreciate any input on the following:

a. Should BIG have a "disclaimer" advising all meeting participants that BIG, its Co-ordinating Committee and its members are liable for any information/advice they hear/read at BIG events. If yes, suggested wording for the disclaimer would be appreciated.

b. Should BIG have Public Liability insurance? If yes, any suggestion/recommendation on possible providers would be appreciated.

c. Should Big be incorporated to protect its Co-ordinating Committee and its members?

Any other thoughts, comments, feedback would be gratefully appreciated.

Regards,

KieranK

Hi Kieran

These are the sorts of issues which clubs and other not-for-profit organisations wrestle with all the time!

One response is to incorporate an association under the Associations Incorporation Act (Qld).

The Office of Fair Trading Website www.fairtrading.qld.gov.au has a good explanation which I've pinched and set out below:

Why incorporate
An association that remains unincorporated has no separate legal identity from its members and must rely on individuals to do things for it in their own names.

As the management committee members are the ones who normally make and implement decisions for an association, the ultimate responsibility for debts and other legal obligations will usually rest with them.

This will be the situation even if the association is operating according to a written constitution or set of rules.

Incorporation provides relatively inexpensive protection for management committee members against the possibility of being personally responsible for the organisation's debts and liabilities.

Although this protection is not absolute, it does offer protection to management committee members who carry out their responsibilities in good faith and with care, diligence and skill.


There will be fees involved and you've got to get audited annually and maintain accounts etc...all of which may be over the top for the group at this early stage...but something to think about.

Regarding your point a above, A set spiel which is read out at the start of each meeting is also good idea...not only for establishing the ground rules...it helps newbies understand the context and purpose of the group and its meetings...

Good luck.

Get some legal advice if you're going down the incorporation path...

Cheers
N.

 

[kierank]

NigelW or others,

Thanks for the quick reply.

Having read the OFT web site, going down the incorporation path seems to be an overkill for us. For example, electing a President and Treasurer, setting up bank accounts, being audited every year, having an AGM every year, etc.

What risks do we expose ourselves to by not being incorporated??

Isn't there anything less onerous than incorporation??

Regards,

KieranK

 

[NigelW]

Originally posted by kierank
NigelW or others,

Thanks for the quick reply.

Having read the OFT web site, going down the incorporation path seems to be an overkill for us. For example, electing a President and Treasurer, setting up bank accounts, being audited every year, having an AGM every year, etc.

What risks do we expose ourselves to by not being incorporated??

Isn't there anything less onerous than incorporation??

Regards,

KieranK

You need to think about the risks and consult appropriate professional advisers...however, some issues to brainstorm with the other members are the following "what ifs":

1) somebody slanders someone or writes something libellous?
2) someone promotes some form of investment at a meeting, people put money into it and it all goes pear shaped?
3) someone get's food poisoning from tim tams at the meeting
4) someone gets a nasty papercut or inhales too much whiteboard marker at a meeting
5) ???

I agree that it maybe a bit OTT to go down the incorporation path at this stage if the meetings fall off from lack of interest and inclement weather after meeting 2...

But you should all try to think of the risks, make a judgment call about how to handle them and proceed boldly forward!

(get Asy onto the brainstorming)

Good luck.
N.

 

[bundy1964]

Originally posted by kierank
NigelW or others,

Thanks for the quick reply.

Having read the OFT web site, going down the incorporation path seems to be an overkill for us. For example, electing a President and Treasurer, setting up bank accounts, being audited every year, having an AGM every year, etc.

What risks do we expose ourselves to by not being incorporated??

Isn't there anything less onerous than incorporation??

Regards,

KieranK

Hi Kierank

I can only comment as it stands in SA.

If someone gets hurt going to or from your meeting each committee member can be sued if your not an inc body.

You may have trouble getting public liability insurance.

You wont get directors and officers insurance.

As a minimum you need a constitition and to hold an AGM for the protection of your committee.

I have set up 3 clubs in SA and our rules are better than those in QLD ( no returns required as the turnover is under the limit )

Auditing mat not be as big a hassel as you think if you dont need an accountant to do it ( check your state rules )

I have done 1 MSN/Somersoft meeting in Adelaide to try to get the idea off the ground but without protection of incorporation I would not do it again.

bundy