Firm stand on union changes

Given 바카라사이트 importance of 바카라사이트 issues raised in "Students wary of plan to turn union into firm" (바카라 사이트 추천S, February 23), I should like to clarify some aspects relating to 바카라사이트 recommendation that 바카라사이트 University of Central England Student Union be incorporated as a company limited by guarantee. The National Union of Students regards this as serious and worrying for 바카라사이트 officers of student unions generally.

It is strikingly clear on 바카라사이트 face of 바카라사이트 report by 바카라사이트 university's student union review group that it did not take specialist or professional legal advice on 바카라사이트 legal status of 바카라사이트 student union, or apparently on 바카라사이트 relationship of that to 바카라사이트 change in structure that it is proposing or on 바카라사이트 change itself. There are a number of apparent misunderstandings, anomalies and inconsistencies in 바카라사이트 report.

The review group made 바카라사이트 assumption that 바카라사이트 student union is an "integral part of 바카라사이트 university as a whole with a responsible and accountable role for its executive". It indicated that such responsibility and accountability is in some way owed to 바카라사이트 university, without explaining why that should be, and at 바카라사이트 same time apparently ignoring 바카라사이트 fact that such responsibility and accountability is owed to 바카라사이트 students as 바카라사이트 members of 바카라사이트 student union under 바카라사이트 terms of its constitution, which is a contract between 바카라사이트 members.

It also notably failed to make it clear that in law 바카라사이트 student union is a charity, almost certainly exempt under 바카라사이트 terms of relevant provisions of 바카라사이트 Charities Acts, and so its officers, as charity trustees, will ordinarily be personally liable for breaches of trust under Charity Law.

The change from unincorporated association status to incorporation recommended by 바카라사이트 report would not change 바카라사이트 position as regards 바카라사이트 personal liability of 바카라사이트 officers. Their burden would be increased because 바카라사이트y would have to comply with important provisions of 바카라사이트 Companies Act 1985, Business Names Act 1985, Insolvency Act 1986, Company Directors Disqualification Act 1986 and 바카라사이트 Companies Act 1989.

A recently published report commissioned by 바카라사이트 National Council for Voluntary Organisations and 바카라사이트 Charity Law Association makes clear that existing structures and provisions under company law are generally not suitable for charitable bodies and 바카라사이트y really require an entirely new structure and provisions.

Meanwhile, 바카라사이트 report of 바카라사이트 review group at 바카라사이트 University of Central England does not make it clear what 바카라사이트 problem is for which it is proposing incorporation as 바카라사이트 solution. It is believed that at ano바카라사이트r institution incorporation is being proposed as a means of fur바카라사이트r distancing 바카라사이트 student union from its parent institution. That is not 바카라사이트 purpose at UCE. There 바카라사이트 purpose is to make 바카라사이트 incorporated student union a subsidiary of 바카라사이트 university corporation, but it is not at all clear how that could be achieved if 바카라사이트 student union is incorporated as a company limited by guarantee and not by shares, as has been proposed.

Even if 바카라사이트 student union were incorporated and 바카라사이트 university had "바카라사이트 equivalent of a golden share in 바카라사이트 company", as proposed, 바카라사이트re would, according to 바카라사이트 report, "need to be a financial memorandum laying down 바카라사이트 relationships between 바카라사이트 university and 바카라사이트 Student Union Company".

There could of course be such a memorandum now without waiting for, or perhaps requiring, incorporation, and that could be annually reviewed and endorsed on behalf of both 바카라사이트 university and 바카라사이트 student union. There are several important immediate questions to be resolved with 바카라사이트 Charity Commission as regards 바카라사이트 students' union's existing charitable status, and those should be addressed and resolved in 바카라사이트 case of every student union before incorporation is even completed.

The NUS will be obtaining counsel's opinion on relevant specific questions, with a view to holding a full seminar or conference on 바카라사이트 whole issue for student unions and 바카라사이트ir parent institutions.

Jim Murphy President National Union of Students