What are the consequences if a club violates the club law?
May 31, 2023 | 50,00 EUR | answered by Otto Krebs
Dear lawyer,
My name is Marie Büchner and I am a board member of a non-profit organization that is dedicated to environmental protection. Lately, we have noticed that some of our members are not adhering to the statutes and laws of the organization. There are discrepancies in the use of funds, compliance with decisions, and transparency in the management of the organization.
As a board member, these violations of the organization's laws are very concerning to me. I am wondering what consequences there could be if our organization continues to violate these laws. Could we lose our non-profit status? What legal actions could we face? How can we, as the board, best handle these issues and get the organization back on track?
I want to ensure that our organization can continue its important work in environmental protection and is not jeopardized by legal issues. Therefore, I would greatly appreciate your support and advice on this matter.
Thank you in advance for your help.
Sincerely,
Marie Büchner
Dear Mrs. Büchner,
Thank you for your inquiry regarding violations of association law in your non-profit environmental protection association. It is commendable that you, as a board member, wish to take proactive action to resolve the legal issues in your association and ensure that the important work in environmental protection can continue.
First and foremost, it is important to understand that associations are legal entities subject to certain statutory regulations set out in association law. One of the fundamental requirements for the non-profit status of an association is compliance with the articles of association and association law. If an association repeatedly violates these rules, it can indeed lead to legal consequences.
In the case of violations of association law, various legal steps can be taken. Initially, as a board, you should try to resolve the issues internally by informing the members concerned of the violations and asking them to correct their behavior. If this is not sufficient, you can convene an extraordinary general meeting to discuss the matter and potentially take action.
If the violations are serious and cannot be rectified, it may be necessary to take legal action. Depending on the nature of the violations, this could include revocation of non-profit status by the tax office, challenging decisions in court, or even dissolution of the association. It is advisable to seek legal advice promptly in such cases to determine the best course of action.
To get the association back on track, I recommend actively communicating with the members concerned, establishing clear rules and processes for association management, and offering training on association law if necessary. It is important that all members are informed about their duties and rights within the association to prevent future violations.
I am available for further consultation and support to ensure that your association can continue its important work in environmental protection. Please do not hesitate to contact me if you have any further questions or need legal advice.
Best regards,
Otto Krebs, Attorney
