1. A Guide to Legal Structures for Social Enterprise
A General overview
Legal structures are generally divided in to two distinct groups, those which are
unincorporated and those which are incorporated.
,
Unincorporated Incorporated
Associations (or Clubs) Companies
Trusts Industrial and Provident Societies
Partnerships Community Interest Companies
Community Interest Societies
Limited Liability Partnerships
Charitable Incorporated Organisation
Some Common Features
Legal Status
The principal distinction between these two groups IS that the former, the
unincorporated organisation, has no separate "legal personality" or identity from those
involved in its membership or management. Those involved in an unincorporated
association carry potential personal liability for debts and liabilities which arise in the
course of that organisation's activities. Individuals who manage the organisation, or who
are appointed to represent it for that purpose, should be contracting on behalf of the
organisation, for example agree a lease, buy eguipment or enter into a service delivery
agreement since it has no legal personality. Such individuals will usually have a right to be
re-imbursed by the organisation and may, depending upon the circumstances, have the
right to be re-imbursed by other individuals who manage or are members. However they
r Guide to Legal Structures for Social Enterprise © Vrigleys Solicitors LLP Sept 2009 (rnjl) 3