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Signed contract after company has dissolved

6 replies

Jca29 · 25/08/2019 09:02

I signed a contract earlier in the month with a small charity organisation. I've been having some issues with them and when looking into their charity more I can see the company was dissolved a month before I signed my contract. Does the contract still stand? Does the charity legally have to be registered and should they still be trading?

OP posts:
prh47bridge · 25/08/2019 09:21

A charity does not have to be a company. There are several forms of organisation that are allowed, although with some of them any contracts must be with the trustees as individuals rather than with the charity. It may have become a Charitable Incorporated Organisation (CIO), which would allow it to enter into contracts. If it has, it will be registered with the Charity Commission and can still enter into contracts.

If it has income of more than £5,000 this charity must be registered with the Charity Commission. A search on their website will confirm what type of organisation this is.

Jca29 · 25/08/2019 09:45

Prh47bridge

The website doesn't say much just that they are a a charity run by volunteers. They are not registered on the charity commission I already done a search. I can just see that the main volunteer who runs the charity and is in charge registered with companies house at the beginning of the year and then applied to have it dissolved a few months later which was made official last month.

So a charity doesnt have to register at all with anyone?

OP posts:
prh47bridge · 25/08/2019 10:23

If they are representing themselves as a charity and have income of more than £5,000 per year they must be registered with the Charity Commission.

If they are not registered with the Charity Commission they clearly aren't a CIO. If they aren't a company either they cannot enter into contracts as a charity. Any contract would have to be with the individuals who run the organisation.

It sounds like they may be getting themselves into a mess.

Jca29 · 25/08/2019 10:54

Prh47bridge thank you for that info.
So for example say the contract goes something like this

I anna am signing as described above into rolo's rescue i understand that *rolo's rescue they will take full responsibility...

Signed by myself

Followed underneath the words *rolo's rescue representative and then signed by her.

Names have been changed obviously.

Who have I actually signed over to, the charity or the representative of the charity?

Thanks for your help.

OP posts:
prh47bridge · 25/08/2019 12:58

If the charity is not a company or a CIO it can't enter into contracts so you clearly don't have a contract with the charity. You may have a contract with the individual who signed the agreement.

Xenia · 25/08/2019 17:21

Yes and some organisations even play groups with no limited company are what is known as an "inincorporated assocation" and the members jointly are personally liable although I suspect this charity is not aware of that.

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