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Liability of committee members – obligations when not incorporated – Debts, Loans, Mortgages

When starting a golf club or any business it is important to consider what legal form it will take.

Thursday 7th of September 2017 12:06

A club can be run in either an incorporated form (company) or unincorporated. The form that the club takes will dictate the practices for how it operates and, importantly, it will affect the liability of those persons who run it.


An unincorporated business requires few administrative steps to be formed under the law, compared to incorporated companies that must be formally registered before they exist as a legal entity. Given the extra steps involved, you may wonder why anyone would want to incorporate a company and undergo the registration process. To better understand this the reasoning, it is useful to consider the two forms of entity and the differences between them.

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