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13 May 2013

What sort of legal entity is a club?

My friend, A, has caused some controversy by writing a will that leaves everything to a club of which we are both members. One question that was discussed at the club on Saturday was what sort of legal entity the club is. I have suggested that the committee look into this. There is a club constitution that should give us some guidance. Meanwhile, we are sure that the club is not a corporation. Another member, H, thinks that the club might be a partnership with the members as partners. I disagree; I certainly hope this is wrong, because that would have some severe implications for members! I am inclined to think that the club is a trust, with the committee as trustees and the members as beneficiaries. Does anyone know what the default position is, if the club constitution doesn't answer the question? If we need to reconstitute the club, what should we become?

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