Can a club increase membership fees retroactively?
October 31, 2023 | 50,00 EUR | answered by Thomas Tressel
Dear lawyer specializing in association law,
I am reaching out to you with a question regarding the increase in membership fees of an association. Recently, our association decided to retrospectively raise the membership fees, which are supposed to be valid for the entire past year. As a member of the association, I am concerned about the legality of this measure and wonder if the association even has the right to increase fees retroactively.
The situation is as follows: The association is facing financial difficulties and is forced to increase membership fees to cover ongoing costs. Therefore, a decision was made to retroactively raise the fees in an extraordinary general meeting. This decision has caused dissatisfaction among many members, including myself, as we believe that a retroactive increase is not lawful.
My concerns are that the retroactive increase in fees may potentially violate applicable laws and disadvantage the members. I am wondering if we, as members, can take legal action against this measure and what options we have to challenge the retroactive fee increase.
Therefore, my specific question to you as an expert in association law is: Can an association retroactively increase membership fees and what legal steps can we, as members, take to challenge this decision?
I thank you in advance for your support and look forward to your expert advice.
Sincerely,
Leon Altmann
Dear Mr. Altmann,
Thank you for your inquiry regarding the retroactive increase in contributions in your club. As an expert in club law, I would like to provide you with detailed information on this topic.
In general, a retroactive increase in contributions in a club is not easily permissible, as this usually goes against the principle of protection of legitimate expectations. Members typically rely on the fact that the amount of contributions for the current financial year is set and will not change. A retroactive increase can therefore disproportionately disadvantage the members.
In your case, where the increase in contributions was decided due to the financial difficulties of the club, it is important to verify whether the decision for the retroactive increase was formally correct. This means that this decision had to be properly made at a general meeting and the required majority was achieved. Additionally, the decision must be clearly and unambiguously formulated, and the reasons for the retroactive increase must have been clearly explained.
If you as a member have concerns about the retroactive increase in contributions, you can take legal action. First, you should try to find a solution within the club by expressing your concerns to the board or the general meeting. If this does not lead to the desired outcome, you may consider suing against the decision for the retroactive increase in contributions.
In such a process, it would have to be examined whether the decision was formally correct and whether it complies with the legal requirements. It is advisable to seek support from an experienced lawyer specializing in club law to best represent your interests.
In conclusion, I want to emphasize that the issue of retroactive increase in contributions in clubs is a complex topic and can be assessed differently from case to case. Therefore, it is important to thoroughly examine the legal aspects and, if necessary, seek professional advice.
I hope that I was able to assist you with this information and I am available for further questions.
Sincerely,
Thomas Tressel
Lawyer specialized in club law
