What happens to the assets?

Discussion in 'The Rehearsal Room' started by jockinafrock, Jan 20, 2009.

  1. jockinafrock

    jockinafrock Active Member

    Just been reading a list of bands that are now extinct - when a band folds what happens to all the assets? Do each band's trustees ensure the money generated/instruments are held 'in trust' should the band reform, or is it specified somewhere in the band's constitution what happens? Are the instruments sold? Just curious. Thanks. :tup
     
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  3. The Wherryman

    The Wherryman Active Member

    It depends on how the band is constituted. My understanding is that:

    1) If the band is simply an unincorporated association ie a group of people who have come together with a common aim and there has been no provision in the constitution/rules regarding disposal of the assets, then all the members at the time of dissolution share the assets equally.

    2) It is more common, however, that there is a clause in the constitution that, on dissolution, any assets will not be shared by the members, but will be distributed to another organisation having similar aims and objectives.

    3) If the band is a charity, it is usual for the clause to ensure that the assets are distributed to another charity having similar aims and objectives.

    4) If the band is an incorporated association, there will be provision made in the articles of incorporation as to the disposal of the assets.

    5) There might be a clause which places the assets in the hands of trustees, with a requirement to retain the assets for a given period (two or three years, perhaps) in order to give the band a chance of re-forming.

    6) Although not directly related to the distribution of the assets, it is a good idea to have in the constitution a clause which prevents the band from being dissolved if a certain number (eg 9) of playing members object. This prevents the dissolution motion being passed by a simple majority and gives the band a fighting chance to get back on its feet.

    I hope this helps - and if I've got it wrong, someone will put me right ;)
     
  4. tubafran

    tubafran Active Member

    Generally if a band has applied for lottery funding there is a requirement that the dissolution clause makes provision to pass on the assests to a similar organisation as 2) above.

    Re the decision to disband we at KSB have a "100% membership voting requirement" that is to say if only one member objects it cannot be disbanded. Whether one person makes a band is another question however the band has a 100+ year history and it was decided that it should be done this way. If the band was no longer functioning and was considering this it could in effect be formally moth-balled with a chance to re-form in the future.

    A few years ago Darley Dale band had to all intents ceased and they even gave a final farewell performance but subsequently and due to the efforts of a single member they seem to be pulling in some new players and starting again.
     
  5. andywooler

    andywooler Supporting Member

    Only for the assetts purchased by said lottery grant and only for a period of 10 yrs from the date granted.
     

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