In my uni club we nominate a captain and a squad captain. The squad captain's responsible for organising teams and getting them to competitions, while the captain manages the club and represents it at our athletic union. We have a social secretary to organise socials, a treasurer to handle money matters and a general secrfetary/communications officer to run club communications. Last year our club captain was 9th kyu when elected. Someones grade doesn't affect their ability to run a club. In fact, this has been a very succesful year. We've roughly doubled our numbers (a tough act to follow). Of course, for group competitions we have to keep teams together in similar ability groups. You can't have an 8th kyu taking part in a team kata with 2 1st kyus. Because all our committee are democratically elected, and anyone can run for any position, no-one could complain about being lead by a lower grade. Indeed, such a complaint would be quite ignorant.