MEMBERS of a social club will now be liable to pay anything owed by it after it failed to provide acceptable annual returns for EIGHT years.
Under the Friendly Societies Act, the Financial Services Authority (FSA) has now issued a Notice of Cancellation of Registration of Newhall Social Club, in High Street.
The grounds of cancellation are that ‘the society has wilfully violated section 43 of the Friendly Societies Act by not submitting to the FSA any annual returns acceptable for filing since that submitted for the society’s financial year ending December 31, 2004.’
As a result, the society ceases to be entitled to the privileges of a registered society, ‘but without prejudice to any liability incurred by the society, which may be enforced against it as if such cancellation had not taken place.’
This means that is now has limited legal liability and so the club’s members will now be pursued for any outstanding debts or anything owed by the club, rather than the FSA pursuing the club itself.
The social club was on the Friendly Society register which is for any very small institutions.
The clubs are required to register with the society to retain their legal society status.
It is a requirement of the Friendly Society that clubs must provide annual returns. If this fails to happen, the FSA will write to them and if it does not receive anything then the FSA strike them off the register.
The annual return is a separate document from a company’s annual accounts. It must contain the name of the company, its registered number, the legal return date, the principal business activities of the company, the type of company it is, the registered office address of the company, and the address where the company keeps certain company records.
Newhall Social Club has a licensed bar and holds various charity and music events. The FSA said the issue does not mean the club would close down. No one was available for comment at the club at the time the Mail went to press.