A recent case serves as a warning for all unincorporated charities to seek the protection of limited liability offered by the company limited by guarantee structure. The case involved a charity being wound up in accordance with the Insolvency Act 1986. The attempt to wind up the charity failed because the incorrect procedure was followed, however, if the correct procedure had been used the trustees of the unincorporated charity could have been personally liable and subject to unlimited liability.

Winding_Up_Unincorporated_charities_February_2011.pdf