Murphy, D.E. v Eagleton, T.F. & Ors [1987] FCA 584
Federal Court of Australia
Full text
Select any passage to save a personal note with optional tags.
.
we-* @
c
* JUDGMENT No. 234-7.
CATCHWORDS
Industriai law - registered organization - performance and
observance of rules - resolution of general meeting - whether
binding - whether financial members of state registered union
financial members of organization - form of order.
Conciliation and Arbitration Act 1904 ss. 141, 141A, 1418,
171E.
DONALD EDMUND MURPHY v. THOMAS FRANCIS FAGLETON & ORS.
No. Q.5 of 1987
Gray J.
MELBOURNE
30TH OCTOBER 1987
= 2 NOV 1987
FEDERAL COURT OF
AUSTRALIA
PRINCIPA:
ARIST RY
IN THE FEDERAL COURT OF AUSTRALIA
)
)
QUEENSLAND DISTRICT REGISTRY ) No. Q.5 of 1987
)
)
INDUSTRIAL DIVISION
BETWEEN :
DON. EDMUND MURPHY Applicant
-and-
THOMAS FRANCIS EAGLETON
& ORS. Respondents
ORDER
THE COURT ORDERS that:
The Respondents perform and observe the rules of the
Hospital Employees' Federation of Australia by treating
as a valid and binding resolution the resolution of a
general meeting on 30th March 1987:
"That this General Meeting directs the Committee
of Management of the Queensland Branch and the
Queensland Branch Secretary to forthwith hold all
General Meetings and Special Meetings of the
Queensland Branch at Greenslopes."
unless and until the resolution is rescinded, or a
resolution inconsistent with it is adopted by a
subsequent general meeting of members of the Queensland
Branch of the Hospital Employees' Federation of
Australia.
2; Otherwise, the Rule to Show Cause is discharged.
(NOTE: Settlement and entry of orders is dealt with by 0.36
of the Federal Court Rules.)
IN THE ie) OF'_AU: IA
No. Q.5 of 1987
3. STRICT REGISTRY
INDUSTRIAL DIVISION
BETWEEN:
DONALD EDMUND MURPHY Applicant
~and-
THOMAS FRANCIS EAGLETON
& ORS. Respondents
REASONS FOR JUDGMENT
JUDGE: Gray J.
DATE: 30th October 1987
The applicant in this proceeding seeks orders
pursuant to s.141 of the Conciliation and Arbitration Act
1904 ("the Act"). He is a member of the Hospital Employees'
Federation of Australia ("the Federation"), an organization
of employees registered pursuant to the Act. The respondents
are members of the Federation, and constitute the branch
committee of the Queensland branch of the Federation. The
first respondent, Mr. Eagleton, is the Branch Secretary of
that branch.
On 30th March 1987, a general meeting of the
Queensland branch of the Federation was held at the Redbank
School of Arts, at Redbank, approximately 21 kilometres from
2.
the centre of Brisbane, in the direction of Ipswich. That
meeting was attended by 34 persons who were financial members
of the Federation in its Queensland branch. The meeting
carried a resolution in the following terms:
"That this General Meeting directs the
Committee of Management of the Queensland
Branch and the Queensland Branch
Secretary to forthwith hold all General
Meetings and Special Meetings of the
Queensland Branch at Greenslopes."
In the present proceeding, the applicant seeks
orders that the respondents and each of them perform and
observe the rules of the Federation by treating that
resolution as a valid and effectual declaration of "the
policy of the Queensland Branch" of the Federation, holding
all general meetings of the Queensland branch of the
Federation at Greenslopes, and refraining from holding or
purporting to hold general meetings of the Queensland branch
of the Federation at Redbank, or at any place other than
Greenslopes.
Several provisions of the rules of the Federation
are important. Rule 44(b) provides:
"(b) Subject to the Rules, or Federal
Policy, nothing shall alienate the
right of members assembled in the
General Meeting to determine the
Policy of the Branch. The decision
of properly constituted General
Meetings shall be binding on ail
members of the Branch."
Rule 47(a) provides:
"(a) The Government, management and the
control of the affairs of each
branch shall, subject to these rules _
and any proper direction of the
National Council or the National
Executive be vested in a Branch
Committee."
Rule 50 sets out various powers and duties of the branch
committee. These powers and duties are prefaced with the
words:
"A Branch Committee shall, subject to
these rules and to the control of the
Pranch members as hereinafter mentioned,
have power -
The powers listed include a power to transact all the
business of the branch anda power to exercise any other
powers conferred on the branch committee by the rules. Rule
61 deals with branch general meetings. There is provision
for ordinary general meetings in March, June and December,
and for an annual general meeting in September. There is
also provision for the calling of special general meetings,
by resolution of the branch committee or on the request of
200 financial members or 5% of the financial members of the
branch, whichever is the lesser. The rule also contains the
following provisions:
"(g) Any Ordinary General Meeting, Annual
General Meeting, or Special General
Meeting shall be held at such time
and place as shall be determined by
the Branch Committee of the branch,
but should such Special General
Meeting be called under the
provisions of paragraph (d) it shall
be held not later than 35 days
following the receipt of the
petition by the Secretary of the
branch.
(h) No General Meeting of members of a
branch shall have power to direct a
Branch Committee or reject or review
a decision of a Branch Committee
unless at least 200 financial
members or five per cent of the
financial members of the branch
{whichever amount is the lesser) are
present at the meeting."
Rule 64(a)(1) provides that a quorum at any general meeting
of a branch is 25 financial members. Provision is made in
rule 64(b) for a meeting to deal with business if less than
the normal quorum is present, provided that a previous
meeting has lapsed for want of a quorum.
The major issue which divides the parties to the
Present proceeding is whether the 34 financial members
Present at the general meeting of 30th March 1987 constituted
5% of the financial members of the Queensland branch of the
Federation. Mr. Murdoch of counsel, who appeared for the
respondents (other than the respondent Brian Steinheuer, who
did not appear and was not represented), conceded that if
more than 5% of the members of the Queensland branch were
present, the branch committee is bound to treat the
resolution of that general meeting as binding. Mr. Hall of
counsel, who appeared for the applicant, argued in the
alternative that the resolution is binding even if the 5%
requirement of rule 61(h) is not met, because the resolution
is one involving policy, within the meaning of rule 44(b),
and that this provision overrides the provisions of rule 6l.
Some discussion also took place as to the power of the Court
to make an order under s.141 of the Act in circumstances such
as these, and the proper form of such an order if one should
be made.
The determination of the number of financial
members of the Queensland branch of the Federation is a
matter of great difficulty. This difficulty arises, in large
measure, from the existence of an industrial union,
registered under the Industrial Conciliation and Arbitration
Act 1961 (Qld.), and known as the Hospital Employees'
Federation of Australia, Queensland Branch, Union of
Employees ("the state union"). This case, therefore, is yet
another in which the system of dual registration of trade
unions under the Act, and under the laws of some States,
results in litigation which depletes the funds available to
members of trade unions for the pursuit of their industrial
objectives, as well as government funds, where financial
assistance is given to litigants under 3.141A or 141B of the
Act.
In the affidavit filed in support of his
application for a Rule to Show Cause, the applicant alleged
that approximately 500 people were paying annual
contributions to the Queensland branch of the Federation in
late June of 1987. In his final address, Mr. Murdoch was
content to adopt this figure as representing the number of
persons who are undoubtedly financial members of the
Federation in its Queensland branch. There was some evidence
of numbers of financial members in the branch lower than 500
at various times, but the differences are not material to the
present case. Assuming that there were only 500 financial
members, the 5% figure laid down in rule 61(h) was met on
30th March 1987. The respondents contend that, to this
number, there should be added either 1368, being the number
of persons paying contributions to the state union, or 312,
being the number of persons who pay contributions to the
state union afd who have also signed forms of application for
membership of the Federation. The evidence does not enable a
precise determination of the number of members on 30th March
1987, whichever basis is used for membership. Each of the
figures relied on is a figure for the number of members at
some other time. I accept the evidence of Mr. Van Leent, the
President of the state union, and a former Branch President,
that the turnover of personnel in the areas in which the
state union and the branch have membership is quite small,
and that therefore the turnover of membership is quite small.
The figures given in evidence can therefore be relied on as
giving a reasonably accurate idea of the number of financial
members on the different bases. If the 312 persons who
signed application forms for membership of the Federation,
and who pay subscriptions to the state union, are added to
the 500 or so who are undoubtedly members of the Federation
in its Queensland branch, then the 34 who attended the
meeting on 30th March 1987 do not constitute 5% of the
financial members of the branch. The same is true, to an
even greater extent, if 1368 persons who pay contributions to
the state union are all added to the 500. It should be noted
that the alternative figure of 200 financial members,
referred to in rule 61(h), plays no part in the calculations
for the purposes of this proceeding.
From the fairly sketchy evidence of history which
is available, it appears that prior to 1969 the state union
and the Federation functioned entirely separately in
Queensland. The membership and award coverage of the state
union was and is concentrated in psychiatric hospitals,
geriatric homes, and similar institutions, conducted by the
Queensland government. The Federation's membership was in
the area of Commonwealth institutions, particularly the
Repatriation General Hospital at Greenslopes. In 1969, some
form of amalgamation occurred, although it is unclear how
this was carried out, because the rules of the state union
and the Federation which are in evidence do not refer to it.
The members employed by the Commonwealth became known as_ the
Brisbane sub-branch of the state union, which is divided into
sub-branches. From 1969 until 1983, it appears that the
state union and the branch were conducted as if they were one
body. All members were treated as members of both. No
separate meetings were held. One bank account was
maintained. All members voted in elections for positions in
the state union, the branch and the Federation.
In 1983, an issue arose as to whether Mr. Daley,
who then purported to hold the positions of Branch Secretary
and Secretary of the state union, was validly a member of the
state union. Some separate meetings were held. In 1984,
separate elections occurred for the branch and the state
union, although all members seem to have been regarded as
eligible to vote in both. As a result of those elections,
Mr. Eagleton became Secretary of the branch, and one Kenneth
Richard Evans became Secretary of the state union. Mr. Evans
challenged the results of the branch elections and instituted
a@ proceeding for an inquiry by this Court into those
elections. In the course of the inquiry, Mr. Evans alleged
that the persons employed under state awards in Queensland
had not been admitted validly to membership of the
Federation, and therefore should not have been allowed to
vote in the election for Branch Secretary. The Court made no
determination of this issue, because the parties to the
proceeding made arrangements, which included an arrangement
to attempt to validate the membership of those whose
membership was in doubt, pursuant to s.171E of the Act. The
judgment disposing of the inquiry was delivered on 19th March
1985.
Following the election of Mr. Eagleton as. Branch
Secretary, the branch and the state union were operated
separately. Separate bank accounts were kept, separate
meetings were held and separate membership cards were issued.
There is an issue in this proceeding as to whether the bulk
of persons employed under state awards were treated by the
Federation as members, and whether they held themselves out
as members at that time. The Federation seems to have taken
the view that it would prefer to deal with the state union,
and appointed Mr. Evans and the Assistant Secretary of the
state union as its agents in Queensland. Some persons paid
contributions directly to the National Secretary of the
Federation at its registered office in Melbourne.
In consequence of the separate operations, and of
the stance taken by the Federation, conflicts arose and
further litigation occurred. There is in evidence a
memorandum dated 12th December 1985, setting out arrangements
between the Federation and the branch, in an endeavour to
resolve some of the conflicts, and the litigation. The
arrangements concerned personnel and money, and included a
statement that the National Executive of the Federation would
10.
renew its attempts to validate the membership of the
Federation of persons in Queensland.
Unfortunately, the conflicts were not resolved
completely by that document. By a further document,
described as an agreement, and dated 18th March 1986, a
further attempt was made to resolve the problems which had
arisen. This document purports to he a tripartite agreement,
the parties to which are the Federation, the branch and the
state union. There are obvious difficulties in law about a
branch being regarded as a party to an agreement. Among the
recitals in the agreement was the following:
"(b) the Branch and the State Union
recognise and accept that members of
the Branch should be and should be
treated as members of the State
Union and that members of the State
Union should be and should be
treated as members of the Branch;"
The agreement sought to divide industrial representation
between the state union and the branch, according to whether
the persons concerned were employed under state awards or
federal awards. Clause 2 of the agreement is as follows:
"Membership
The Federation, the Branch and the State
Union agree that all members of the State
Union shall be treated and regarded as
members of the Federation and the Branch
and that all members of the Branch shall
be treated and regarded as members of the
State Union."
ll.
There was also provision for contributions in the following
terms:
"Membership Contributions
(a) The Branch agrees that the annual
contribution payable by any member
of the Branch who is employed
pursuant to a State award and/or
State legislation shall be fixed
Pursuant to the Rules of the
Federation at the rate of $Nil
provided that such member is a
financial member of the State Union
and further agrees that any moneys
received by the Branch from such a
member by way of annual contribution
shall be paid to the State Union.
(b) The State Union agrees that the
annual contribution payable by any
member of the State Union who is
employed pursuant to a Federal award
or Federal legislation shall be
fixed pursuant to the Rules of the
State Union at the rate of s8Nil
provided that such member is a
financial member of the Federation
and any moneys received by the State
Union from such a member by way of
contribution shall be paid to the
Branch.
({c) The amount set by the Branch shall
not be less than the amount set by
the State Union."
Provision was also made for the payment of various amounts
between the branch and the state union. The state union is
obliged to pay to the branch amounts equivalent to the
branch's obligations to the National Council of the
Federation and to the Australian Council of Trade Unions,
12.
such amounts being calculated on the basis of the number of
members employed under state awards. The branch is obliged
to pay to the state union amounts equivalent to its
obligations to the Queensland Trades and Labour Council, the
Australian Labor Party anda mortality fund, the amounts
being calculated in respect of members employed under federal
awards. Various other arrangements are made by the
agreement, including an arrangement that the branch should
have a full time official working in the office of the state
union, and should pay to the state union 25% of its income on
a quarterly basis towards office and other expenses. The
agreement also includes an obligation onthe part of each
party to take at the earliest opportunity such action as may
be necessary to alter its rules in order to give effect to
the agreement. This agreement became known as "the working
agreement".
On 21st April 1986, a special general meeting of
the branch was held at the Repatriation Hospital at
Greenslopes. The notice of meeting stated the agenda as
being:
"1. To endorse the decision of the
Branch Committee, in the formulation
of a Working Agreement between the
Branch, the State Union, and the
National Federation.
2. (i) To determine the entrance fees
payable by applicants for
membership of the H.E.F.A.
Queensland Branch.
13.
(11) To determine the annual
contributions payable by
members of the H.E.F.A.
Queensland Branch."
Mr. Eagleton addressed the meeting on the terms of the
working agreement. He was followed by Mr. Les Butler, then
the National Secretary of the Federation, who also dealt with
the terms of the working agreement. In all, a thorough
explanation was given of the terms of the working agreement.
The meeting carried unanimously a resolution:
"That this meeting fully endorse all
areas of the "Working Agreement" between
the National Federation Queensland
Branch, and the State Registered Union."
The meeting then proceeded to deal with entrance fees, and to
pass without dissent a resolution:
"That the entrance fees for new members
be $1.00 and this amount to remain in
force for two years."
The meeting then proceeded to discuss contributions. Again,
the motion on this subject was carried without dissent. It
was in the following terms:
"That the amount payable shall remain
$3.54 per fortnight or $91.00 per annum
and this amount to remain in force until
changed by a General Meeting of the
Branch and the extra $1.04 contributed by
14.
members within R.G.H. Greenslopes and
R.H. Kenmore annually, shall be returned
to the local H.E.F. Welfare Fund."
It should be noted that this resolution does not in its terms
refer to contributions, although it appears in the minutes of
the meeting under the heading "Re:- H.E.F.A. Qld. Branch
Annual Contributions". Perhaps more importantly, there is
nothing in the terms of the resolution itself to indicate
that contributions are being fixed only for members of the
branch covered by federal awards, or that members of the
branch working under state awards are to have a contribution
rate fixed at nil.
The working agreement has not been implemented
fully. The branch has not appointed any person to work full
time in its interests; Mr. Eagleton explained in evidence
that the branch committee takes the view that the branch has
insufficient funds to support a full time official. Some
payments have been made under the agreement by the branch to
the state union, and by the state union to the branch,
although conflicts have arisen over the manner of making of
those payments, particularly over the making of a payment
direct to the insurer operating the mortality fund of the
branch's contribution to that fund, instead of paying it to
the state union.
The applicant's case is that the Federation has no
15.
more than the 500 or so members in Queensland who work under
federal awards, and have paid their contributions to the
branch or to the Federation itself. On Mr. Hall's argument,
none of the 312 persons who are employed under state awards,
have filled in application cards for membership of the
Federation, and pay their contributions to the state union is
a member of the Federation. The cards, so Mr. Hall contends,
are ineffective to bring about membership of the Federation,
because they are addressed and have been posted to the
National Secretary of the Federation in Melbourne, and rule
6(a) of the Federation's rules requires an applicant for
membership to "forward or cause to be forwarded to the
Secretary of the branch to which he would, if admitted to
membership, be attached" a signed application for membership
on a form approved by the National Executive. Mr. Hall also
argued that those applications were not effective to validate
pre-existing purported membership, pursuant to s.171E of the
Act, because that provision requires that the applicant
concerned has "up to a time within one month before the
application, acted in good faith as, and been treated by the
organization as, a member...". By reason of the separation
of the branch and the state union in 1984, it is said that
any treatment of those persons as members of the Federation
ceased more than one month before late 1984 or early 1985,
when the applications were completed. If the 312 are not
members, it follows that none of the other persons working
under state awards and paying contributions to the state
16.
union is a member of the Federation. In the alternative, if
any of the 312 or the other persons working under state
awards is a member, the applicant contends that such a person
is not a financial member of the Federation, as the rules
oblige members to pay contributions to the Branch Secretary
or his duly appointed agent; see rule 8(d). This argument
depends upon the proposition that the special general meeting
of 21st April 1986 fixed a contribution rate for all members
of the branch, whether working under state or federal awards,
and in particular that it did not fix arate of nil for
members working under state awards.
Mr. Murdoch's primary argument was that all of the
members of the state union were also members of the
Federation, the membership of most of them dating from the
days when the two bodies were conducted as if they were one,
and nothing having occurred in the meantime to cause the
membership of those persons to cease. Alternatively, the 312
had their membership validated by s3.171E of the Act, by
making fresh applications, or the fresh applications
themselves were sufficient to cause those persons to become
members, in accordance with rule 6(b) of the rules of the
Federation, on receipt of the application by Mr. Eagleton as
Branch Secretary. This argument involved the proposition
that no entrance fee was fixed by a general meeting of the
branch prior to 21st April 1986. On Mr. Murdoch's argument,
the resolution regarding contributions which was passed at
17.
the special general meeting of 21st April 1986 was only a
resolution covering members employed under federal awards;
no previous contribution rate having been fixed separately by
the branch, members employed under state awards were not
obliged to pay anything by way of contributions to the
branch, and could not therefore be unfinancial within the
meaning of rule 10(a) of the rules of the Federation, which
only makes unfinancial "a member owing contributions...for a
period in excess of 13 weeks". This argument depends upon
the proposition that the endorsement of the working agreement
by the general meeting on 21st April 1986 was equivalent to
the application of its terms in the fixing of contributions.
There is grave danger in attempting to read the
minds of persons present at meetings. In general, the only
safe guide to the will of a meeting is the actual text of a
resolution carried at that meeting. In the present case, the
meeting of 21st April 1986 carried a resolution relating to
contributions which is in general terms. Nothing in the text
of that resolution limits its operation to members employed
under federal awards, or excludes from its operation members
employed under state awards. It is difficult to regard the
resolution as limited in its application. It is even more
difficult to regard it as a positive fixation of the
contribution rate for state award members, fixing that
contribution at nil. It must be borne in mind that the
obligation of the branch under the working agreement was to
18.
fix at nil the annual contribution rate payable by a member
employed pursuant to a_ state award who was also a financial
member of the state union. No where in any resolution of the
meeting is there specific mention of financial membership of
the state union. It is unlikely that the meeting would have
intended to adopt a nil contribution rate for all members
other than those employed under federal awards, whether or
not those members were paying contributions to the state
union; to do so would have rendered financial in the
Federation persons who did not pay at all.
I accept that, in the face of the endorsement by
the special general meeting of 21st April 1986 of the terms
of the working agreement, the failure to fix a nil rate for
financial members of the state union is a strange omission.
The applicant, Mr. Van Leent and Mr. Simmonds, the present
National Secretary of the Federation, gave evidence that the
meeting was told by Mr. Butler that it would be necessary for
ageneral meeting of the branch to fix a nil rate of
contribution for the requisite members. Their evidence was
to the effect that the special general meeting was told that
a further meeting would be necessary to accomplish this end.
It may be that this furnishes an explanation for the failure
of the special general meeting to carry out the terms of the
working agreement in this respect. Alternatively, the
explanation may simply be that no-one moved a motion in the
requisite terms. Whatever the reason, however, I find that
19.
the special general meeting of 21st April 1986 did not fix a
separate contribution rate of nil in respect of members of
the Federation in Queensland employed under state awards,
whether they be financial members of the state union or not.
I am also satisfied that, on its proper construction, the
resolution which was passed in relation to contributions is
of general application to all members, and obliges members
under state awards to pay a contribution to the branch, even
if they are also paying to the state union.
There are specific provisions in the rules of the
Federation enabling a branch committee to exempt a member
from payment of contributions. These provisions, which are
found in rule 8(e), require a written application by the
member concerned. On the evidence before me, no member
employed under a state award has made such a written
application, and the branch committee has not exercised its
power to exempt any member from the payment of contributions.
In the face of such an express power, it is difficult to see
how the branch committee could have some general power to
exempt in large numbers members from paying contributions, or
to accept payments made to the state union as amounting to
satisfaction of the members' obligations to pay contributions
to the Federation. In any event, on the evidence before me,
the branch committee has not resolved to exempt large numbers
of members from their obligations, or to accept payments to
the state union as satisfaction for contributions. There are
20.
a few members employed under state awards who have paid their
contributions to the branch; for the most part, these are
the respondents. Otherwise, members employed under state
awards were not financial at the time of the general meeting
on 30th March 1987.
In those circumstances, it is unnecessary for me to
deal with the question whether any of the 312, or any other
members of the state union employed under state awards, are
members of the Federation. I incline to the view that the
applications for membership completed by the 312 were
effective to make those persons members, when the
applications were received by Mr. Eagleton as Branch
Secretary. The forms themselves were approved by the
National Executive of the Federation. Even though they were
addressed to the National Secretary, rule 6(a) of the
Federation's rules permits an applicant for membership to
"cause to be forwarded" to the Branch Secretary his or her
application. There is no reason why such an application
should not be forwarded through the National Secretary. Even
if an entrance fee was applicable at the relevant time, rule
6(b) does not appear to make the payment of the entrance fee
a pre-requisite to the attaining of membership.
As to whether those forms were effective to
validate pre-existing purported membership, pursuant to
s.171E of the Act, or as to whether persons employed under
21.
state awards were members of the Federation, the evidence is
really inadequate to enable a determination to be made. A
finding as to membership may well depend upon the individual
circumstances of the member concerned, and the evidence does
not go to the history of each person. Accordingly, I make no
determination on this question.
Nor is it necessary for me to decide Mr. Hall's
alternative argument that the resolution of 30th March 1987
concerns "policy" within the meaning of rule 44(b). I
incline to the view that rule 61(h) overrides rule 44(b),
in so far as the general meeting is purporting to direct the
branch committee, whether as to policy or otherwise. Even if
rule 44(b) is not subject to rule 6l1(h) in all cases, I am
inclined to think that it is inthe case of a specific
function of the branch committee, such as that of determining
the place of a general meeting, pursuant to rule 61l(g). In
any event, I doubt that the resolution concerned a matter of
"policy". Even if the resolution is to be construed as
calling upon the branch committee to hold general meetings
anywhere in the suburb of Greenslopes, as distinct from at or
near the Repatriation General Hospital, it is still specific
enough to constitute a direction to the branch committee,
rather than a formulation of policy.
From my conclusion that the only financial members
of the branch are those who have paid contributions to the
22.
Federation, rather than the state union, it follows that more
than 5% of the financial members of the branch attended the
general meeting of 30th March 1987, which passed the
resolution the subject of this proceeding. Accordingly, that
resolution is binding on the branch committee, either by
reason of rule 6l1(h) itself (the positive being inherent in
the negative), or by reason of rule 44(b). While the
resolution of 30th March 1987 remains operative, the branch
committee is therefore obliged to comply with it by
conducting all general meetings at Greenslopes.
The question then arises as to the appropriate form
of order. When a rule of an organization provides that
resolutions of a governing body shail have binding effect,
there is a real question as to whether such a resolution may
be enforced under the provisions of 8.141 of the Act. It
must always be remembered that 3.141 is designed to secure
compliance with the rules of an organization, and not to
secure compliance with the resolutions of governing bodies.
Plainly, when a rule gives binding effect to a_ resolution,
the two subjects merge. It must also be borne in mind that
the governing body may rescind its resolution, or adopt
another, inconsistent with the first. No machinery exists
for a person against whom an order is made pursuant to 3.141
to return to the Court and ask for a variation or discharge
of the order in such circumstances. By virtue of sub-s.(4),
failure to comply with an order of the Court under s.141 is a
23.
criminal offence. The Court should not be too ready to
attach criminal sanctions to disobedience of a resolution of
an organization's governing body. Resolutions may vary from
requiring the performance of a single act to requiring the
performance of a continuous series of acts or the adoption of
a permanent position or attitude. It may be that, with
sufficient attention to the form of the order made, it is
possible to formulate an order which will enforce the
performance and observance of the rules effectively without
trespassing overly into the area of enforcement of mere
decisions of the governing body. Such a course may involve
requiring persons under an obligation to perform or observe
the rules to recognise and treat as valid the particular
resolution, until such time as it is rescinded or an
inconsistent one passed. I note that in Williams v. Ward
(1984) 8 I.R. 234, the Court made an order directing the
taking of the necessary steps to dismiss an employee of an
organization, relying upon a rule which provided that a
decision of a committee of management should have full effect
and be observed by members of the relevant branch.
In the present case, it seems to me that an order
compelling the respondents to perform and observe the rules
of the Federation by treating the resolution of 30th March
1987 as a valid and binding resolution of a general meeting,
unless and until the resolution is rescinded, or a resolution
inconsistent with it is adopted by a subsequent general
24.
meeting, will suffice. An order in those terms will be made,
and the Rule to Show Cause will be discharged otherwise.
Appearances
Applicant:
Mr. D. Hall
Instructing solicitors: Hawthorn
Cuppaidge & Badgery
Respondents (other than the respondent Brian Steinheuer):
Dates of hearing:
Mr. J. Murdoch
Instructing Solicitors: W.H. Tutt & Co.
10th, lith, 13th, 14th August 1987
llth September 1987
I certify that this and the preceding
twenty-three (23) pages are a true copy
of the Reasons for Judgment of the
Honourable Justice Gray.
Dated: BCH Cudrey PIS +
Associate mean Rung