From Wikipedia, the free encyclopedia
A
voluntary association or union (also sometimes called a voluntary organization, unincorporated association, or just an association) is a group of individuals who voluntarily enter into an agreement to form a body (or organization) to accomplish a purpose.
Strictly speaking in many jurisdictions no formalities are necessary to start an association. In some jurisdictions, there is a minimum for the number of persons starting an association. Some jurisdictions require that the association register with the police or other official body to inform the public of the association's existence. This is not necessarily a tool of political control but much more a way of protecting the economy from fraud. In many such jurisdictions, only a registered association is a juristic person whose membership is not responsible for the financial acts of the association. Any group of persons may, of course, work as an association but in such case, the persons making a transaction in the name of the association are all responsible for it.
An unincorporated association has been defined as existing:
"...where two or more persons are bound together for one or more common purposes by mutual undertakings, each having mutual duties and obligations, in an organisation which has rules identifying in whom control of the organisation and its funds is vested, and which can be joined or left at will."[1]
In most countries, an unincorporated association does not have separate legal personality, and nor do members of the association usually enjoy limited liability. However, in some countries they are treated as having separate legal personality for tax purposes.[2] However, because of their lack of legal personality, legacies to unincorporated associations sometimes fall foul of the general common law prohibitions against purpose trusts.
Associations that are organized for profit or financial gain are usually called partnerships.[3] A special kind of partnership is a co-operative which is usually founded on one man—one vote principle and distributes its profits according to the amount of goods produced or bought by the members. Associations may take the form of a non-profit organization or they may be not-for-profit corporations; this does not mean that the association cannot make benefits from its activity, but all the benefits must be reinvested. Most associations have some kind of document or documents that regulate the way in which the body meets and operates. Such an instrument is often called the organization's bylaws, regulations, or agreement of association.
