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Funds in Hand - Legal or Accountancy definition

Could someone explain precisely what this means? I am a member of a club that has lost it's liquor license (incompetence), but the lunatic committee think they have now convinced the police to let them have another one. The problem is, after being closed for 4 months the lunatic committee tell the members that there is about 3k in the bank and over 10k of creditors(including 6k for unpaid stock used in the last month before they were closed down), but that is "no problem" as they can "trade their way out of debt." Btw, there has been no audited accounts for 3 years so no-one knows the true financial position, and the committee always lie through their teeth.

Question: What are the "funds-in-hand" of this club? 3k? or -7k? Unknown? The reason I ask is that I understand it is not legally possible for a club like this - an unincorporated association - to operate except by payments out of "funds in hand." Todd v. Emly(1841) ; Wood v. Finch(1861)

What remedy is there to prevent these idiots from continuing to trade?

cheers

Reply to
Jasper Richards
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Just let em get on with it and watch from a safe distance.

Reply to
Skinny

What other assets does the club own? The value of this should be added to the CIH to work out if the club is trading solvently or not.

hth

tim

Reply to
tim

Agreed, just let them get on with it.

Plenty of companies trade with a seriously negative bank account. One company I worked for had a 1.5m overdraft for over 12 months. The bank only decided to call it a day when it reached

2m. The directors lied through their teeth about their prospects which is why it went on for so long.

Matt.

Reply to
Matthew Maddock

Well, as I said there have been no audited accounts for 3 years. There have in fact been no accounts for 3 years either, just ad-hoc meaningless 'balance-sheets' provided by the committee from time-to-time. The property is held on a lease, the only conceivable assets I guess are fixtures and fittings and any left-over stock. We suspect the committee are fiddledeedee..... Father, Son, son's girlfriend, son's girlfriend's brother either working behind the bar, on the committeee or both.

Reply to
Jasper Richards

Unless you stand to personally lose anything, I'd be inclined to leave them to it. It sounds as if they are making themselves a noose.

As something that the OP's question brought to mind, I recall years ago (and in a different country), a club circumvented the liquor licencing law by having a "ticket" system. It started as a genuine "storage" system. People were permitted to bring their own booze for consumption in the clubhouse. The club provided storage and refrigeration for the member's own booze, and issued tickets so that the members could claim their property. The members had to pay for the tickets - a charge for the storage of their property.

Later, certain club members bought more booze than they would personally expect to consume, and sold their tickets to other club members who had not brought anything so that they could redeem and consume the drink. It then developed into a more formalised arrangement, where the club commitee would stock the bar with drink, and sell tickets to members to "reclaim" the booze that had been "bought on their behalf". The tickets were also used in exchange for food and other goods - which again were purchased and prepared by club members on behalf of all.

At the time & place, this system was a loophole in the law that effectively allowed the sale of alcohol without a licence, because the booze on the premises was regarded as being the collective personal property of the members, and its distribution in exchange for a ticket did not constitute the sale of alcohol.

I wonder if that would work in the UK today?

Reply to
Cynic

I did not ask you for advice on tactics, but advice on law. I do not intend to follow your advice on tactics. Thanks anyway.......

Reply to
Jasper Richards

You might find a more respectful post, indicating the nature of the requested response in absolute clarity will result in the response you seek, you condescending arrogant s*****ad.

MC

Reply to
Marcus Collie

"Marcus Collie" wrote > You might find a more respectful post, indicating the nature of the

Are you an Englishman?

Reply to
Jasper Richards

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