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Club (Members' Club)

General characteristics

The term "club" can be used in a wide range of circumstances, but a members' club will generally be run on co‑operative lines, as a form of consumer co‑operative. People join the club because they wish to access the services offered, and will usually pay an annual subscription plus the purchase price of anything consumed (e.g. food and drink).

Ownership: a members' club is owned by its customer-members, unlike a proprietary club which may be owned privately.

Charitable status: a members' club not normally be eligible for charitable status, unless all the members are considered charitable beneficiaries (e.g. deaf clubs, some youth clubs).

Examples of use

Working men's clubs; British Legion clubs; and a wide selection of similar institutions.

Legal forms used

Most are registered either under Friendly Society legislation (it is no longer possible to register using this) or as industrial and provident societies. It is possible to register a club as a company.

Profit distribution

Any distribution of profits to members is in effect a rebate on overpaid fees for services provided, and thus will commonly be allowed (though sometimes "in kind" rather than in cash - some working men's clubs give all members a certain volume of free beer as a dividend). However, a club making a surplus on members' fees may just reduce its charges instead.

Participation issues

Participation is generally restricted to members.

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