Equity and Trusts

Description

Alice is the treasurer of the University’s Really Rubbish Football Club (URRFC), a football club for people who enjoy playing football but who are not actually very good at it. The football club asks members to pay £10 to join the society, and also asks for donations from members for social activities and events. It is also possible to become an associate member for £5. Associate membership allows a person to attend the social events, but not to participate in any of the matches.

They also charge a £1 admission fee for people to watch their matches, and there is a collection after every match in order to pay for future events.

A plastic football worth £25 is awarded every year to the person who proves themselves to be the Really Rubbish Football Club’s worst player.

Unfortunately however, the club has not been active in the last three years, and Alice and Bob, the club’s secretary, have decided to bring the club to an end.

The club has two bank accounts in its name: ‘the club account’ into which all the membership fees, donations, and admissions fees are paid. This account currently contains £200.

The second bank account contains £75 – which is the prize money in order to buy a football for the worst player. No award has been made for the last three years.
The club currently consists of 10 members – 7 of these are full members, and the other 3 are associate members. The money in the account therefore comprises of money they paid in order to be members, and also money paid by former members who have left the university.

Please advise Alice and Bob on:
a. whether they are trustees for URRFC, and on what basis.
b. how the money in the two accounts should be distributed.
c. how would your answer to part b differ if Alice is the only surviving member.