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Prospective Bankrupt standing as a Committee Member

Prospective Bankrupt standing as a Committee Member

Wednesday 26th of July 2017 13:02

If a golf club is a registered society, rather than a company, it is governed in part by general company law and in part by the Co-operative and Community Benefit Societies Act 2014 (“CCBSA 2014”). Under the CCBSA a director of a society would be referred to as an “Officer” and would principally be bound by the similar duties and rules to which a director would also be under a duty to comply with. A society would be registered with both Companies House and the Mutual Public Register of the Financial Conduct Authority.

Generally, rules relating to the disqualification of an officer of a society can be located within the Company Directors Disqualification Act 1986 (“CDDA 1986”). This Act applies to society officers. Section 11 of CDDA provides that it is an offence for a person to act as a director (or officer) of a company (or Society), or directly or indirectly to take part in or be concerned in the promotion, formation or management of a company (or Society), without the leave of the court, at a time when he/she is an undischarged bankrupt.

One should also consider the governance rules of the society, which may call for the officer to be immediately removed from office in the event of certain circumstances, such as bankruptcy. 


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