Legal advice in club and association law
Clubs and associations have a fixed place in our society. Besides their actual purpose, they also play an important role in topics such as social contacts, cohesion, and integration. However, clubs and associations must also stand legally on solid ground. MTR Legal Lawyers are aware of the great importance of clubs and associations and advise them on all relevant legal and tax law issues. Our legal advice explicitly includes clubs with a professional department, as is the case with many sports clubs.
Advice on all legal and tax law issues
Our experienced lawyers advise clubs and associations on their formation, the drafting of statutes, and ongoing organization. We are also competent contacts for the restructuring of clubs or changing statutes. In addition, we advise clubs and associations on issues of non-profit status, asset management, or dealing with donations and sponsorships. As a full-service firm, we also support clubs and associations in all relevant legal areas such as labor law, corporate law, or tax law. Our advice includes topics such as
5000+
Mandates
Team
Experienced lawyers
Global
Internationally active
8
Offices
Utilize our expertise in the field of clubs & associations and book a consultation to professionally resolve your concerns.
Purpose and statute creation
A club must always have a main purpose. Even if the club can be commercially oriented in areas, that should not be the main purpose. This greatly distinguishes it from a company. If a primarily economic goal is pursued, another legal form is usually more suitable.
A club can be registered in the register of associations. The registered club (e.V.) is a legal entity. This, in turn, brings rights and obligations. Club founders must therefore decide whether registration is in their interest.
The e.V. must establish statutes. The statutes should be kept clear, but also reflect as accurately as possible the club founders’ ideas about purpose and goals. Therefore, it is advisable to always create statutes individually. Our lawyers are happy to assist as competent contacts.
The association is usually also an e.V. with the same rights and obligations. Its members primarily consist of clubs that organize in the association. As a result, the association’s legal structure is significantly more complex. Our lawyers therefore advise on formation and statute creation to ensure the association is on legally sound footing.
Subsidiary for economic goals
A registered club may not pursue economic goals as its main purpose. However, this does not mean that there cannot be clubs whose members have joined for commercial purposes. The legislator differentiates here between non-economic and economic clubs. While the non-economic club obtains its legal capacity through registration in the register of associations, the economic club obtains its legal capacity through state granting.
Nonetheless, an e.V. can pursue economic goals. The establishment of a subsidiary can be advisable for economic activity. Such a subsidiary can also be helpful in asset formation. We are happy to show you the different possibilities and advise on implementation.
Minimize liability risk for boards
Boards of associations and federations are usually elected by the members. The board manages the business and represents the association or federation externally. This involves risks, and in case of breaches of duty, the board can be held liable internally or towards third parties – even with their private assets. However, liability can be limited in the statutes. Additionally, taking out D&O insurance can be advisable. Our attorneys are happy to advise associations and federations on the possibilities. If the office is performed voluntarily or for a small expense allowance, liability is limited to intent or negligence anyway.
Compliance with Charitable Status
Charitable status is an important factor for many associations. To avoid unpleasant surprises, the requirements for charitable status, along with tax benefits, should be clarified with the tax authorities at an early stage. If the prerequisites for charitable status are not met, it can be revoked. We advise associations and federations to ensure that the tax law requirements, including the law on charitable status, are complied with.
Book your consultation – choose your preferred date online or give us a call.
More Info
Social Media
© 2024 MTR Rechtsanwaltsgesellschaft mbH
