Legal News Update 

Our round up of news that could affect your club

Legal Documents Update

We have updated our Model Constitution in relation to disciplinary issues and abandoned boats. The accompanying Guidance Notes have also been updated along with the Abandoned Boats Guidance. The updates can be downloaded from our website.

Proposed Abolition of Cheques

We reported some time ago that the Government is proposing to abolish the use of cheques by 2018. The Payments Council (the strategic body tasked with ensuring that the UK payment system meets the needs of payment service providers and the wider economy) is hosting a free workshop on 7 March 2011. The workshop will look at:

• The Payments Council work on the future of cheques
• What they are doing and why
• How you use cheques to make, receive and hold payments
• Gaps in alternatives available for sports clubs and associations
• Your cheque alternatives requirements
• The Payments Council’s future plans

The workshop can be booked through the Sport and Recreation Alliance (formerly the Central Council for Physical Recreation)

The Bribery Act 2011

The Bribery Act 2011 was due to come into force this April but has been delayed following the Government’s decision to review the Guidance required by the legislation regarding ‘adequate procedures’.

The Act, which is now expected to come into force later this year, will replace the existing law on bribery. For the first time it will include a ‘corporate offence’ which will apply to an incorporated club within England and Wales, Scotland and Northern Ireland.

The ‘corporate offence’ under Section 7 is the failure by a commercial organisation to prevent bribery. This offence is committed when a person associated with the organisation bribes another intending either to obtain or retain business for that organisation or intending to obtain or retain a business advantage for that organisation.

A defence is available if an organisation can prove on the balance of probabilities that it had in place ‘adequate procedures’ designed to prevent associated persons from paying bribes.

In addition to the ‘corporate offence’ any legal person can commit offences under Section 1 – bribing another person, Section 2 – offences relating to being bribed and Section 6 – bribing a foreign public official for which there is no ‘adequate procedures’ defence.

More information can be found on the Ministry of Justice website.

Club Insurance

Heath Lambert has operated as an RYA-endorsed broker for over 30 years.

To ensure that they provide the most comprehensive and competitive insurance solution to RYA clubs and training centres the scheme now has the flexibility to provide up to £10m Public Liability limit for both marine and shore-based risk exposures. Previously this limit was only available on land and a £10m limit for marine risks has been difficult to obtain across the insurance market.

This positive development will provide a cost-effective and slicker operational solution for clients, whilst at the same time offering indemnity limits now sought contractually by many local authorities , without the need for top-up 'Excess Layer Liability' covers.

The RYA-endorsed Club & Training Centre Insurance facility is currently being used by over 900 clubs and 350 training centres.

For more information contact Ben Bennett on 01384 822279 or email bbennett@heathlambert.com