CorporateLawTakeHomeExamQuestion1stSemester20120.doc

Advise Alan of his rights under s14A and s14B of the Associations Incorporation Act 1981 that are attached herein.

Question
1b) Alan is a member of the VU Table Tennis Club Inc. During the club's end of financial year meeting Alan had a heated exchange with the chair of the meeting who refused to allow Alan to ask the committee questions about the poor financial position of the club. Following the meeting Alan received a Notice of Expulsion. The Club sought to expel Alan under rule 34(1) of its constitution whhttp://www.ukassignment.org/essayfw/19809.htmlich set out the grounds upon the club could expel a member including that a member could be expelled for “conduct unbecoming a member”. Alan’s membership fees are unpaid.
Advise Alan of his rights under s14A and s14B of the Associations Incorporation Act 1981 that are attached herein.
Would your answer be different if the VU Table Tennis Club was a company limited by guarantee?
Associations Incorporation Act 1981 - SECT 14A
Enforceability of rules and purposes
14A. Enforceability of rules and purposes

(1) The rules of an incorporated association constitute the terms of a contract between the incorporated association and its members for the time
being.
(1A) Subject to this Act, an incorporated association must not-
(a) exercise any power that the incorporated association is prohibited, by the rules of the incorporated association, from exercising; or
(b) exercise any power contrary to a restriction on the exercise of that power contained in the rules of the incorporated association; or
(c) do any act that is outside the scope of the statement of purposes of the incorporated association.
(1B) The public officer or a member of the committee of an incorporated association must not in any way, by act or omission, directly or indirectly, be knowingly concerned in or party to a contravention by the incorporated association of subsection (1A).

(2) The Magistrates' Court may, on the application of an incorporated association, a member of an incorporated association or the Registrar, make an
order-
(a) giving directions for the performance and observance of the rules of the incorporated association by any person who is under an obligation to perform or observe those rules; or
(ab) restraining an incorporated association from doing an act that is outside the scope of its statement of purposes; or
(b) declaring and enforcing the rights or obligations of members of the incorporated association between themselves or the rights or obligations of the incorporated association and any member between themselves.

(3) An order may be made under this section whether or not a right of a proprietary nature is involved and whether or not the applicant has an
interest in the property of the incorporated association.
(4) The Magistrates' Court may refuse to make an order on the application or may make an order for costs against a party, whether successful or not, if it is of opinion that-
(a) the issue raised in the application is trivial;
(b) having regard to the importance of the issue, http://www.ukassignment.org/essayfw/ the nature of the incorporated association, any other available method of resolving the issue, the costs involved, lapse of time, acquiescence or any other relevant circumstance, it was unreasonable to make the application; or
(c) the unreasonable or improper conduct of a party has been responsible for the making of the application, or has added to the cost of the proceedings.
(5) The Registrar may make an application to the Magistrates' Court under subsection (2) only if the Registrar is satisfied that it is in the public interest to do so. Associations Incorporation Act 1981 - SECT 14B Grievance procedure

14B. Grievance procedure
(1) The rules of an incorporated association must set out a grievance procedure for dealing with any dispute under the rules between-
(a) a member and another member; or
(b) a member and the incorporated association.
(2) A member may appoint any person to act on behalf of the member in the grievance procedure.
(3) The grievance procedure must allow for natural justice to be applied.
(10 marks)
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