people over the age of 50 who live in Chesterfield. Unincorporated associations. refused to be acknowledged) then the property which reverts is ownerless (i.e. they do not believe in Re Denley and consider it bad law and therefore do not consider this to be a valid proxy, NB there are cases in which the courts have used the Re Denley proxy: see, This is explored more in part 3, but in brief money held on the contract-holding theory is easier to deal with in the event of a dissolution (i.e. The point about becoming a corporation (whether an incorporated association or a co-operative or a company) is that it creates something else that can be sued, and this has an effect in drawing fire away from members of the group as individuals. The range of possible unincorporated associations is limitless, but typical examples include: An unincorporated association is not recognised as a separate legal entity to the members associated with it. If that purpose is to generate a profit, then the unincorporated association they've formed is a partnership or a joint venture. An unincorporated association isn't entirely without legal effect. (iii) Rejection of the “Re Denley purpose trust”, (iv) Relative simplicity on dissolution (see Part 3 below), Contract-holding theory: Money applied in accordance with the association’s rules, Charitable/Re Denley trust: Money applied to charitable/non-charitable purpose(s), In accordance with the association’s rules; or, When the number of members falls below two; or, Re West Sussex Constabulary Trusts [1971], Re GKN Bolts & Nuts Ltd etc. For example, if a group of friends get together and start raising funds for a local park, they have created an unincorporated nonprofit association. ⇒An unincorporated association is an association that has not been incorporated (i.e. You don't have to be part of an organisation to do good work- you can go it alone, and many successful people have. it should be no problem bringing a trust for an unincorporated association's non-charitable purpose within the Re Denley principle → the members of the association are going to be directly and tangibly benefitted by the purpose’s performance, So this is a fourth possible proxy the court will use when faced with a transfer to an unincorporated association i.e. Examples of unincorporated associations : 1. Societies • Unincorporated Associations Not a separate legal entity Assets held in trust by members No minimum requirements with respect to operation or management (purely contractual relationship – very flexible, but also creates uncertainty) Members are liable for debts/liabilities • Incorporated Societies The members of a management committee of a charity that is formed as an unincorporated association are likely to be charity trustees.For more information on unincorporated associations, see Practice note, Unincorporated associations. the person who originally set up the Re Denley trust), So if the beneficial interest under the resulting trust arising from failure of a Re Denley trust is disclaimed (i.e. Unincorporated business definition: a privately owned business, often owned by one person who has unlimited liability as the... | Meaning, pronunciation, translations and examples Flexible. subject to the association’s rules) → so the money must be applied in accordance with the association’s rules, which will specify the various purposes for which the money can be sent, Note, however, the association’s rules can be changed by its members so as to allow the funds to be spent on new purposes, So, under charitable/Re Denley trusts money is applied to the relevant charitable/non-charitable purpose(s) at the date of the transfer (they are therefore unchangeable), So the rules might specify, for example, that the association will be dissolved if 2/3 of its members agree to a dissolution, If there is no provision as to dissolution in the rules then the members can dissolve by unanimous agreement under the common law, The second way in which a unincorporated association comes to an end is when the number of its members falls below two (i.e.