There are various ways to organize or structure a Boston sports club. Each and every aspect has some advantages and disadvantages and each of the aspect is intended for a particular sports group. Let’s talk about these aspects in details.
- This is a simple and informal way to establish a sports organization.
- In this case, the group usually set up a set of rules and regulations to manage the relationships between the different members of the organization.
- In this case, the legal formalities and administrative costs are kept to a minimum.
- The rules of an unincorporated association are not showcased in any public records and thus allow the privacy of the club affairs.
- This type of organizational structure is suitable for the budding clubs, who do not hold any significant property.
- A guarantee company consists of members who elect a board of directors to conduct the affairs of the company.
- The executives reports to the board of directors.
- There can be a public or a private guarantee company.
- A public limited company should have a minimum of seven members with no upper limit on the number of members.
- A public limited guarantee company does not have a share capital.
- A private limited company can hold a maximum of 99 members.
- A private limited guarantee company must have a share capital.
- This type of Boston sports hierarchy system is suitable for the larger clubs, which holds certain property and governing bodies.
Private Limited Company
- A private limited company has members who hold shares in the company.
- A private limited company limited by shares can have a maximum of 99 members.
- The rules and regulations of the company are contained within the memorandum, which is filed in the Companies Registration Office.
- The company has a defined set of rules to deal with the conduct of the organizational affairs.
- This level of the Boston sports hierarchy has the power to raise finance by attracting investors by issuing shares and debentures.
- This is suitable for large clubs wishing to make a profit and to distribute that profit among their members.
Public Limited Company
- A public limited company offers its shares to the public.
- A public limited company can directly sell its share through stock exchange.
- In this part of the Boston sports hierarchy, the voting rights are limited to a number of specific shares so as to retain the control of club in a few hands.