Page 6 - ALG Issue 1 2020

legal matters
What are the options for allotment associations taking on
the responsibilities of self-management?
The majority of Allotment Associations are unincorporated; this means that they operate as a group of individuals with the common purpose of allotment gardening; however, they have no legal identity. The group may have a constitution, which regulates how they run, and this document provides the rules which apply to the group’s members.
As an unincorporated association
and not having any legal standing, the association are unable to own land, cannot take any form of legal action or enter into any contractual agreements, including Tenancy Agreements and Leases for land. An association of this nature would have to appoint trustees to enter into contracts on their behalf. An association following this route must have a clause within their constitution to allow the appointment and removal of trustees. For a lease agreement there should be a minimum of two, but often local authorities will require three or four trustees.
When Allotment Associations are considering new long-term leases
or self-management of the site, it is important that a form of risk analysis is undertaken. If the trustees are prepared to accept the risks involved, then that is the appropriate route to take. Another option is to look at trustee insurance; this type of insurance protects trustees against personal liability when their organisation or a third party makes a legal claim against them. Finally, if the risks are seen as not acceptable to the trustees, then it may be appropriate for the Association to consider incorporation.
The National Allotment Society have operated as a Co-operative for the
last 90 years. We are in a strong position to offer sponsorship to our members to become incorporated via the co-operative route. This model is appropriate for organisations owned by their members and governed on the principles of one member one vote.
A Co-operative has an internationally recognised definition: A Co-operative
is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.
This model is suited to the running of allotment associations and is based
on the values of self-help, self- responsibility, democracy, equality, equity and solidarity. As you will be aware the founders of the Co-operative movement were firm believers in the ethical values of honesty, openness, social responsibility and caring for others, which reflects the allotment movement. Where an association wishes to explore the options for incorporating, the NAS Head Office can assist with this process.
Firstly, the principal benefits and disadvantages do need to be considered not only by the Committee but also by the membership. It is important that the Association examines all the various legal forms available to them with
the pros and cons of each. The NAS
can assist with this information. It is important that:
• The form chosen respects the aims and objectives of the Association.
• A form is chosen that minimises the
administrative burden and costs both
initially and ongoing.
• Whatever form is chosen, the members
need to be able to understand the rules and will involve as little change to the Association as possible.
If this route is something your association is considering, then the next steps for the Committee are to find out the following:
• Processofincorporationandtheoptions
available
• Timingandcostsofthewholeprocess
• Meetingsthatneedtobearrangedwiththe
members of the Association
• Consentsrequired
• Documentsthatneedtobeprepared
• Notificationtootherparties
• Anypresentcontractualagreementsinplace
• SoftwareandIPlicences
• Anyregistrationsyouareholding
• Bankaccounts
• Insurancepolicies
• Associationpoliciesandproceduresthatmay
require amendment
• Writtenandelectronicdocumentation
• Electricity&waterservices/contractsinplace
• SupplierstotheAssociation
• HMRC
For help and support with the above processes contact natsoc@nsalg.org.uk.
Liz Bunting,
Legal and Operations Manager
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6 Allotment and Leisure Gardener