Everything about Voluntary Association totally explained
A
voluntary association or
union (also sometimes called a
voluntary organization,
unincorporated association, or just an
association) is a group of individuals who
voluntarily enter into an agreement to form a body (or
organization) to accomplish a purpose.
Strictly speaking in many
jurisdictions no formalities are necessary to start an association. In some jurisdictions, there's a minimum for the number of persons starting an association. Some jurisdictions require that the association register with the police or other official body to inform the public of the association's existence. This isn't necessarily a tool of political control but much more a way of protecting the economy from
fraud. In many such jurisdictions, only a registered association is a
juristic person whose membership isn't responsible for the financial acts of the association. Any group of persons may, of course, work as an association but in such case, the persons making a transaction in the name of the association are all responsible for it.
Legal status
An unincorporated association has been defined as existing:
» "...where two or more persons are bound together for one or more common purposes by mutual undertakings, each having mutual duties and obligations, in an organisation which has rules identifying in whom control of the organisation and its funds is vested, and which can be joined or left at will."
In most countries, an unincorporated association doesn't have
separate legal personality, and nor do members of the association usually enjoy
limited liability. However, in some countries they're treated as having separate legal personality for tax purposes. However, because of their lack of legal personality,
legacies to unincorporated associations sometimes fall foul of the general common law prohibitions against
purpose trusts.
Associations that are organized for profit or financial gain are usually called
partnerships. A special kind of partnership is a
co-operative which is usually founded on one man—one vote principle and distributes its profits according to the amount of goods produced or bought by the member. Associations may take the form of a
non-profit organization or they may be
not-for-profit corporations; this doesn't mean that the association can't make benefits from its activity, but all the benefits must be reinvested. Most associations have some kind of document or documents that regulate the way in which the body meets and operates. Such an instrument is often called the organization's bylaws, regulations, or agreement of association.
Civil law
In some
civil law systems, an
association is considered a special form of
contract. In the
Civil Code of Quebec this is a type of
nominate contract. The association can be a
body corporate, and can thus open a bank account, make contracts (rent premises, hire employees, take out an insurance policy), lodge a complaint etc. In
France, conventional associations are regulated by the
Waldeck-Rousseau law of
July 1 1901 and are thus called, except in
Alsace and
Moselle where the law of
April 19 1908 applies (these countries were German in 1901). The
Civil Code of Germany contains different regulations for registered non-profit and for-profit associations regarded as juristic persons ("Vereine", articles 21-79) on the one hand and for not necessarily registered associations by contract ("Gesellschaften", articles 705-740) on the other hand. In
Texas, state law has statutes concerning unincorporated nonprofit associations that allow unincorporated associations that meet certain criteria to operate as entities independent of their members, with the right to own property, make contracts, sue and be sued, with limited liability for their officers and members.
Australia
In most Australian states a similar set of laws allows not-for-profit associations to become legal entities with a limit to the liability of its members. An example of such a law is the South Australian 'Associations Incorporation Act 1985'(
(External Link
)). This allows for the creation of a legal entity able to buy and sell land and in general enter into legally binding contracts. Many clubs and societies begin life as an unincorporated body and seek to attain incorporated status to protect its members from legal liability and in many cases to seek government financial assistance only available to an incorporated body. Clubs and Societies wishing to incorporate must meet the provisions of the relevant state act and lodge their constitution with the corresponding state government authority.
Freedom of association
The freedom of association stands in the
Universal Declaration of Human Rights:
» Article 20
(1) Everyone has the right to freedom of peaceful assembly and association.
» (2) No one may be compelled to belong to an association.
Further Information
Get more info on 'Voluntary Association'.
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