Dissolution Clause?


#1

Hi,

As part of a grant application I have been requested to supply the squadron’s dissolution clause? I have searched through the documents I have (ACP 11) but can find no clause stating what will happen to funds/assets should our squadron cease to exist.

Any help/guidance will be appreciated.

Joy


#2

This would be something for the Civ Com to decide…

I would suggest something along the lines of;

XXX (Anytown) Squadron Air Training Corps, is unlikely to be dissolved, as our facilities are contractually provided by Reserve & Cadet Forces Association, and in the event of the facilities being sold, they would be obliged to provide alternative accommodation. Further due to the demographic of the group and local area, recruitment of members is a continual process. In the unlikely event of dissolution the view of the current trustee’s is that the assets of the squadron would be divided and gifted to neighbouring Air Training Corps Squadrons who share the same aims as us, and would welcome our current members at the time so they can continue their cadet journey.


#3

You missed out the part about being closed down and merged with another Squadron willing or unwillingly.


#4

I think this is in the long missing AP1919… currently being rewritten to account for the Cadet Forces Commission change - but leaving us without an actual constitution until its rereleased!!!

Worth shooting this up to Wg Committer to apply some pressure for either;
Original AP1919 to be release
The new version of AP1919 to be release

We shouldn’t have been left in a position where we dont actually have access to one!!!


#5

And before any of our CivCom members come on here bumping gums about how the dissolution of the Sqn committee should be independent of orders from on high. I hear you. And I agree with you.

It should be written into ACP11 as well - and the two should be synched in perfect harmony etc. Maybe they will align in the future.

For now I’m still concerned that the Law of unintended consequences has left us without an actual workable constitution until some Whitehall legal eagle has signed it off!!!


#6

It’s not really that difficult. The fairly standard dissolution clause used by Community Amateur Sports Clubs (CASC) will fit the bill:

In event of dissolution the proceeds after settlement of outstanding debts will go to either another CASC, the national governing body (ngb), a charity (with similar aims and objectives).

So, amalgamation is covered, central funds if you wish (Wing, Region, HQAC it’s up to you) the Air Scouts if you feel like being bolshie.

It’s non-public funds, raised by an external body and the Charity Commission would take a dim view of attempted interference. Most ngbs try to steer clubs towards donating it in that direction, but few take the hint.

Exmpa


#7

All squadrons should have a signed Constitution Agreement - see Annex A to ACP11. Para 30 covers the dissolution of the Squadron Association. Hope this helps


#8

I have reviewed the relevant paras in AP-1919 and they are no longer legal by a long way. Understand Batfink … but in case Joy43F isn’t aware …

(Simple version) In the event of a squadron closing:

  • RFCA are responsible for disposal of the building, once vacated
  • The CivCom must follow the law as it applies to trustees in disposing of any assets or funds - initially to like-minded beneficiaries, but ultimately as they choose. This may include returning to original donor, or even having one last hurrah.
  • ATC-HQ only have administrative responsibilites (once they have taken the decision to close or merge)

On no account does any writings about balancing the books and handing money to your Wing, Region or ATC-HQ hold water. The Charity Commission might turn a blind eye to centralising the funds, but if any other party was dissatisfied you could be legally challenged on the basis that under dissolution, your legal duty is to your beneficiaries (the cadets) not the organisation. It would probably be better to consider writing that you would donate any residues to other local squadrons (who may receive some of the cadets on closure anyway).

All Civcoms are charities independent of the squadron and, as a charitable trustee, you are legally responsible for all actions in your charity. ACP-11 is a mess and should not be blindly relied upon with the same deference as other ACPs.


#9

Thanks everyone for all the help and guidance.

I emailed Wing Chair and Treasurer who were both extremely helpful.
Tesco were finally happy with this response - Fingers crossed we get the Grant.


#10

Not wishing to dampen spirits, but it is the Trustees who are the fundraisers - they have a statutory duty in Law.

However I have read what has been said and it is essential to note that the ACO has slightly different ideas. So by going along and making some declaration on dissolution, might be placing the Trustees in a position of liability should the ACO play its’ hand and makes a grab for the cash (or after conversion into assets) because it only wants to play by its’ own rules which do not necessarily accord with the Law.

Dont forget the Civcom is the legal entity, not the ACO, so if Tesco are not happy should the dissolution bit not be played out properly, it will be the Trustees they come after.

There is an increasing requirement for openness, and it is sad to say the concept is not clearly understood, but donors are entitled to know that their money is spent in line with the stated purpose.


#11

Just for interest and discussion … what was the response?


#12

This is the information I forwarded to Tesco.

‘If a squadron is closed the squadron account is closed and after settlement of any debts, direct debits, standing orders and bills etc, the funds are dispersed to squadrons absorbing the cadets from the closed squadron in proportion to the numbers of cadets that each squadron absorbs.’

Tesco were happy with this response - as yet, no news to say if the grant application was successful or not.


#13

Presuming the CivCom trustees are making those decisions … sounds great.

Many thanks for the update.


#14

Like anything you can say anything and do something else if it happened.
Personally I have a blow out.