This Practice Note explores Unincorporated associations. It describes the legal framework and structure of an unincorporated association and considers the perceived advantages and disadvantages of operating this vehicle.
What is an unincorporated association?
An unincorporated association:
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is an organisation formed when two or more persons (the members) carry on activities together for a common purpose
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does not operate for the purpose of generating profit (in fact, if two or more persons carry on business for the purpose of making a profit, a Partnership will be established and partnership law will apply鈥攕ee Practice Note: The nature of a general partnership and its legal framework)
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is not a separate legal entity from its members and officers, which means that the officers and members are personally liable for the debts and obligations of the association, and
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may not enter into contracts, own assets, sue or be sued in its own name
Advantages and disadvantages
Advantages
The key advantages of operating an organisation using an unincorporated association are:
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flexibility鈥攖he association can create its own Rules governing its operation and management
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