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Old 04-14-2009, 08:58 PM   #1
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Club Incorporation

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This topic came up at our club meeting tonight. The premise is that in the event there is an accident, The club executive would be named as parties in a law suit. By incorporating this would make the club the party to be named. How many clubs are incorporated. Also is this a route more clubs may need to look at.

Last edited by aceplant00; 04-14-2009 at 09:53 PM.
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Old 04-14-2009, 09:40 PM   #2
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Re: Club Incorportation

All clubs I belong to, and have belonged to are incorporated.
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Old 04-14-2009, 10:39 PM   #3
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Re: Club Incorporation

Originally Posted by aceplant00 View Post
This topic came up at our club meeting tonight. The premise is that in the event there is an accident, The club executive would be named as parties in a law suit. By incorporating this would make the club the party to be named. How many clubs are incorporated. Also is this a route more clubs may need to look at.
As far as I know the Corporations Act states that the members will be protected. I don't think the officers of the club are exempt at all.

Here is the pertinent section: Canada Corporations Act Part II

You should have a good look at it. You might be surprised at some of its requirements.

Additional info

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Old 04-14-2009, 11:00 PM   #4
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Re: Club Incorporation

Last year our club was put in the position that we needed to be incorperated or lose our field. After asking here on RCC and talking to other clubs there was very little to go on and not much of a consensus on the subject. Sorry, not to bash MAAC as they are great organization and I thank them alot they were not much help either. We decided that as we our club did not have much money to hire a lawyer on our behalve I did it ourselves via on-line throught incorperation canada. Cost was about $700.00 and after having to jump through a few hoops and wqait about 4-5 weeks to get it back in the mail it was complete. satisfied the terms set out for us, and we are good to go. If the lawyer was to do this for us we were looking at several thousand $$$'s. If your club decides to incorperate PM me and I will send you the adress I used. The lady on the other end I was deling with was VERY helpful and patient with my MANY e-mails and silly questions
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Old 04-14-2009, 11:54 PM   #5
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Re: Club Incorporation

There is insurance available to protect club exceutive from legal action as well as those who serve on committes.
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Old 04-15-2009, 08:15 AM   #6
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Re: Club Incorporation

You do not need to be FEDERALLY INCORPORATED, but doing it through the province is sufficient.

The cost is really minimal -- not more than a hundred to two, and can be done as a walk-in. If you wish to have the incorporation papers actually specify the club name, it's more expensive and takes more time. However, all of the legal paperwork can say "XYZ model aircraft club (####### Ontario)".

For Ontario, the organization that you'd need would be a "not for profit corporation". This does not mean it's a charity (different set of requirements) but one that is not intended to turn a profit. Of course, building up contingency funds such as for the acquisition or development of a field is permissible as the funds will be used for the club.

There are annual reporting requirements but the level of DIY accounting done by the club treasurer is sufficient. Follow standard record keeping and report creation (balance sheet, income and expense statement, assets and depreciation calculation) plus the reports needed for the local Ministry of Finance.

I do know that the Aurora Model Aircraft Club is incorporated (though they did go through the Letters Patent process I believe rather than the voer-the-counter numbered company), and your executive should contact their executive to get the right information on what is required.

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Old 04-15-2009, 02:37 PM   #7
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Old 04-16-2009, 01:30 AM   #8
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Re: Club Incorporation

As stated by Byrocat. Applies in BC also, non-profit is easy and does provide some protection to exec and directors.
In BC you don't even file financials anymore as of a year ago.
Just a simple form listing directors and exec info annually and of course the mandatory government fee ($25). So after becoming a non-profit the requirements are minimal.
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Old 04-19-2009, 07:07 PM   #9
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Our club in Sarnia is talking about dissolution from incorporation due to the cost of an auditor to file our income tax report at a cost of $650.00. The illustrious Gov. in their wisdom and Greed has deemed it nececary for our club to file an INCOME TAX report even though we are a non profit club, and our bank account and membership has , as most other clubs in the last while, gone down. Out of the frienship of one of our members, our taxes for the last few years was done by an accountant at no cast, but advised us that from now on it would be in the $500 to $600 dollar range. As you can see, we are weighing the sides to see which way we will go...............It will be interesting .......... Al

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Old 04-20-2009, 08:02 AM   #10
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Re: Club Incorporation

Where do you go to get the information on provincial incorporation in Ontario? This has been discussed in our club, but nothing has ever come of it. Curious!!!
Ron L J Roy
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