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Old 04-27-2012, 08:24 PM   #11
Dave Holmes
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Re: Club Incorporation

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At least two of the clubs I belong to are incorporated as not for profit corporations. Protects the directors from direct lawsuits. Let's face it if someone does something really dumb, outside of MAAC's guidelines, our insurer could say "you're on your own!" and the clubs directors could lose everything they own. This way the club (hopefully) will lose their bank account, but the directors will keep their homes.
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Old 04-27-2012, 08:45 PM   #12
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Re: Club Incorporation

We incorporated. Ran into some issues on how people within the club interprete not for profit. A member was designing and building planes and then selling them. This was considered to be against the not for profit of the club? Turned into a ball of @#$% and the member was terminated when they refused to stop what they were doing.
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Old 04-27-2012, 10:57 PM   #13
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Re: Club Incorporation

Not sure, but one of the things that MAAC insurance doesn't cover is liability on the part of the Executive. Another is that various organizations want to have a corporation (a full legal entity, rather than a simple association) on the other side of any agreements or contracts.

Going for Trillium Grants from the Ontario Government is one where being incorporated is a requirement.
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Old 04-27-2012, 11:00 PM   #14
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Re: Club Incorporation

Oh good grief! Here we go again! Pulling our heads back into our shells like a bunch of paranoid turtles. The "what if" monster rears it's ugly head again & we all scramble for cover! Shall we all sell everthing we enjoy & stand around in our houses looking out at the world just in case?

The lawyers & insurance companies squeek & we all go running off the cliff like lemmings!

No! I'm not directing this at you Dave or Todd or anyone else on this forum, I'm just fed to the back teeth with all this male bovine rectal excretion we all seem to get swept up in! It seems like every where you turn nowdays someone is on this tangent.

My opinion is that you just can't put everyone in a prison just for the sake of one or two "wingnuts" that are at large!

Ok! I'm done now! Sorry in advance if I have offended any one! Got it off my chest, feel better now - medication please dear?

Just ignore me - ok? Thanks!
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Old 04-28-2012, 07:53 AM   #15
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Re: Club Incorporation

hi our club was incorporated last spring , and we did it through the City hall , they took care of all the mombo jumbo and it cost us under 400.00 .Check with your town if there isn't any help you can get for non lucritive clubs and affiliations.
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Old 04-28-2012, 09:11 AM   #16
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Re: Club Incorporation

Our club incorpoated primarily so that we could gain access to grants. In Ontario, almost all grants are restricted to non profit organizations. The proof they require is your incorporation number.
Some members, who run their own business, would not stand for office in our club unless we incorporated because of the liability concerns.
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Old 04-28-2012, 10:10 AM   #17
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Re: Club Incorporation

Hi Guys;

I am with Old Prairie Redneck a bit. We can't go thru life paranoid about being sued. If that were the case we should never drive our cars. This is supposed to be a fun hobby.

Not sure how the non profit charters work, but I know for a fact that directors and officers of private corporations are personally fully responsible for any liabilities of the corporation. The laws were changed a number of years ago.

FYI our club is incorporated. Like others have said, today probably the best reason for incorporation if you plan to apply for a Trillium grant in the future.

Best thing to do is make sure you have MAAC and follow the safety rules. In the event of an accident, the lawyers, the courts and the insurance companies are going to duke it out and you and I don't have any say anyway!
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Old 04-28-2012, 11:04 AM   #18
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Re: Club Incorporation

Thanks for all the replies so far.
I personally think having to go this far for a hobby is retarded. However some members/executive are asking about it so someone has to start the ball rolling by looking into it.
Some of the posts have good info to look further into, thanks for the tips! I'll try to keep the thread updated as we progress, whichever direction we take, in case the info will be of use to another club with the same questions.
Have FUN!!!!!!! (and for god sakes, be safe!!)
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Old 04-28-2012, 11:26 AM   #19
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Re: Club Incorporation

Originally Posted by JKovats View Post
Like others have said, today probably the best reason for incorporation if you plan to apply for a Trillium grant in the future.
Here is a classic issue of whats wrong in this country, NOT payin' your own way!

Perhaps if you can't cut it on your own, you shouldn't be doing it.

Each Province has their own version of "Incorporation" laws. Annual returns to the Corporations branch aren't usually a big deal if the structure (Board of Directors and shareholders) doesn't change. If it does, be prepared for all the headaches associated with it.

One of the wisest things I ever heard was from a guy who'd set up a small family corperation. He said, "it took five minutes to initiate the whole thing, we probably won't live long enough to get out of it". He was right, he died and the Company still wasn't disolved 30 years later.

Be careful what you wish for, you might get it.

Last edited by PurgatorY; 04-28-2012 at 11:35 AM.
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Old 04-28-2012, 09:33 PM   #20
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Re: Club Incorporation

Incorporation is much like insurance. What it creates is an additional layer of protection.

The current climate in lawsuits is that everyone gets sued, even the innocent and peripherally-involved. It's not about right and wrong, but who's got the best defense and deeper pockets.

Case in point: I was rear-ended by someone who was pushed into me (chain-reaction collision.) The person who caused the accient fled the scene and then claimed that their vehicle had been stolen. The people in the middle car got a personal-injuries lawyer, and I got a letter of intent to sue for injuries received.

Most clubs can get by without incorporating. It's when you start dealing with groups that insist on only dealing with corporations that you should consider it.

Last edited by PurgatorY; 04-28-2012 at 09:42 PM.
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