Definitely best to ask counsel in your state but, in general, the reason to
incorporate (or the creation of anything similar, like a LLP, LLC, etc) is to
limit liability, this goes for not-for-profits as well. You will need to be
very specific about your concerns and why! Peircing the corporate veil is
possible and some of that comes from the how and why of the incoporating
process itself. Remember that a not-for-profit follows similar rules and for
its well being, it should be set up with the assistance of a good lawyer and,
even more important, a good accountant.
I would also speak with someone from a well established car club to see how
they did it and some pitfalls. PCA is based out of VA.
Mark D. Wemple, Esq.
359 Dun Robbin Drive
Severna Park, Maryland 21146
Tel. (410) 987-5831/ Fax. (410) 987-1410
--- On Tue, 1/6/09, Bud Osbourne <abcoz@hky.com> wrote:
> From: Bud Osbourne <abcoz@hky.com>
> Subject: Re: [Spridgets] NLBC: car club legal question
> To: "Deikis, John G" <John.Deikis@va.gov>, spridgets@autox.team.net
> Date: Tuesday, January 6, 2009, 1:25 PM
> John,
> Our local Triumph club looked into that several years ago.
> We found that
> non-profit organizations were pretty much safe from
> frivolous (or any kind,
> actually) litigation. However, this is Pennsylvania and
> you're in VA(?),
> so, your best bet would be to spend a few bucks with a
> local attorney to
> determine your actual exposure. That way, you can make a
> genuinely informed
> decision.
> Good luck.
> Bud Osborne
> ----- Original Message -----
> From: "Deikis, John G" <John.Deikis@va.gov>
> To: <spridgets@autox.team.net>
> Sent: Tuesday, January 06, 2009 11:58 AM
> Subject: [Spridgets] NLBC: car club legal question
>
>
> > You guys know everything, so here's a question for
> someone who may have
> > training or past experience in this area.
> >
> >
> >
> > 1. Do the officers and board of a car club have
> liability exposure if
> > someone takes legal action against the club?
> >
> >
> >
> > 2. Does anyone know if "Directors &
> Officers" insurance is commonly
> > taken out by entities as podunk as a local British car
> club?
> >
> >
> >
> > 3. If a newsletter advertiser does not "do
> right" by a customer, and the
> > customer learned of the merchant through the
> club's newsletter, can the
> > customer name the club as well as the merchant in
> suit?
> >
> >
> >
> > 4. Anybody know where I can read up on this sort of
> stuff?
> >
> >
> >
> > Thanks in advance.
> >
> > JohnD
> >
> > (No, I'm not being sued...just don't want to
> be in the future!)
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