[wlug_org] Individual liability from not being incorporated.

[Tony Wills]

--=======5F9C6C7E=======
Content-Type: text/plain; x-avg-checked=avg-ok-2185845; charset=us-ascii; format=flowed
Content-Transfer-Encoding: 8bit

At 08:49 10/08/04 +1200, Carl wrote:
>I was thinking more along the lines of:
>
>Wellylug holds an installfest, which everyone in the room agrees is 'A Good
>Thing(tm)', and finds a venue. We plug various bits of equipment into the
>power sockets, perhaps even daisy chaining them. Someone (unidentified)
>puts just one more wafer on the pile and something goes bang causing a
>fire. Building owner claims insurance. Insurance company reviews events and
>determines cause is improper use of electrical system. Looks to recoup loss
>from person or persons concerned. Wellylug (Inc.) limits loss to the Inc.
>Soc. assets ($425 as I recall...). Wellylug as individual members? I'd be
>willing to bet that an Insurance company would be prepared to go after some
>if not all. How successful would they be? Don't know. Would it be an
>unmitigated pain in the butt to defend? You bet. Could I personally do
>without the hassle? Absolutely.

Not a good example, as many have found out to their cost, individual 
negligence etc (eg recent case of volunteer ambulance driver) is in no way 
mitigated just because you were operating as part of a long established 
organisation doing good deeds.  The incorporated societies act protects you 
from little apart from liabilities directly incurred by the society within 
its rules.

The inc. society act 1908 essentially says
"Except when otherwise expressly provided in this Act, membership of a 
society shall not of itself impose on the members any liability in respect 
of any contract, debt, or other obligation made or incurred by the society."

An inc. society could take out some sort of public liability insurance (I'm 
not sure what that can cover), but so can any group (including WellyLUG or 
the individual organisers).
Perhaps that's something to spend the contentious $$$ on :-)

>...A small group of like minded individuals
>... which automatically voids our public liability insurance.

Lots of examples that just go to prove incorporation (or other legal 
structures) don't protect individuals from liability for negligence etc.

>At the end of the day it comes down to risk analysis. How likely is it that
>a loose organisation of identifiable individuals with a fairly benign goal
>will be targetted by the forces of evil? Not very. Can I see a sitaution
>where we could be? Maybe. Am I worried about it? No.

You're still asserting that being incorporated is some sort of all 
encompassing protection - it is not.
If someone is silly enough to let an inc. society run up bills which it 
can't pay then the society is still expected to raise the money (from 
members if necessary) and pay them.  If they don't then the usual outcome 
is that the group is bankrupted and dissolved.  I'm not sure what effect 
this has on the members of the committee (are they treated like directors 
of a bankrupted company, are they banned from organising another 
group??).  But other protection, where is that spelt out in the act?

Anyway how on earth can you sue all members of a group when the group 
doesn't even have a definition of who its members are?? :p

--=======5F9C6C7E=======--