Proof Of Group Ownership

[XX621]

Have a question about group flying....

Do group owners receive any formal papers documenting their part-ownership upon purchase of a share from another group member? If not, how do you "prove" you are a part-owner / shareholder if required?

Thanks all.

[Shunter]

We run our group as a limited company, so you get a share certificate detailing your share capital, a form goes to companies house, and it's part of the annual return.

[Mike Cross]

Alternatively there's nothing to stop you producing individual share certificates without going the Ltd Co route or else you produce a partnership agreement. Produce one per member and you all sign them. You each keep one, job done.

[Cusco]

I've got a receipt for the dosh I stumped up indicating I've paid for a sixth share.

That's all

Cusco

[SkyCamMK]

Make sure you send your name and address as the latest share member on the CAA form if it is a UK group. It is the duty of the trustee to maintain a list of share owners and to inform the CAA every time one changes hands. There is a fee to pay. Make sure you see the official list of owners and when your name is added send it yourself to the CAA. I used a share transfer form I devised if you PM I will send a copy.

Edit Yes I stand corrected fee is only for change of Trustee.

[Mark 1]

There's no fee to pay unless there is a change in trusteeship of the group, which means a change to the C of R.
It would be normal to receive a receipt for your share in the group's assets and liabilities rather than just a share in the aeroplane, and it's up to you to determine the seller's title before buying.
As has been said, the trustees are obliged to update the share ownership grid, but that information is not published and doesn't appear on the C of R.

[robin]

I was in a group where there was no evidence of shared ownership neither were there rules about how you disposed of a share. This led to massive arguments and bad-feeling (and threats of legal action). In fact, some of the group are still waiting for their money 3 years later.

If you do join a group make sure you keep copies of your cheque, photocopies of any and all documentation and, before you join, information as to how you leave the group.

Believe me, this is by far the most important element rarely considered when you join, but vital when you come to leave

[TheOddOne]

I do believe the safest way is to set up a Ltd Co that owns the aircraft and members simply pay an annual membership fee to be a part of the Group. Our Group was modified in this way nearly 30 years ago and it's worked well ever since. The membership form everyone fills in states that their total liability extends to £1.

Cheers,
TheOddOne

[robin]

Hmm - I'm not sure that is particularly the problem here.

I don't think I've ever come across a case locally where liability has been an issue. I've come across a lot of cases where, because there is no effective documentation, someone had lost out on the value of their share

[XX621]

Cheers everyone.:ok:
I have just found this on the CAA site...
http://www.caa.co.uk/default.aspx/default.aspx?catid=56&pagetype=70&gid=118&faqid=296

Looks fairly comprehensive....