Allen, Kevin James v The Vehicle Builders Employees Federation of Australia

[1977] FCA 54

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NSsi.	We would dlsmiss Matters V No. 16 of 1977 and V No. 17 OE
1977.

Order accordlngly.

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groups or c l a s s e s o f p e r s o n s a s c e r t a i n e d b y r e f e r e n c e t o t h e

c o n d l t i o n s of e l l g l b i l l t y p r e s c r l b e d b y t h e r u l e s o f o r g a n i s a t l o n s

so registered :- t h e Jumbunna Coal Pllne No L l a b i l i t y v . The

Vic tor lan Coal Miners ' Assoc ia t lon ( 1 9 0 8 ) 6 C.L.R. 309; R. v. Dunlop

Rubber , Aus t ra l ia Ltd . Ex par te Federa ted Misce l laneous Workers '

Union of Aus t r a l l a (1957) 97 C.L.R. 71.

S e c t i o n 1 4 0 (l) of t h e A c t p rov ides :-

! " 1 4 0 . (1) The r u l e s of an organization.-

(a ) s h a l l n o t b e c o n t r a r y t o , o r f a i l t o make a

p rov i s lon r equ l r ed by , a p r o v l s i o n o f t h i s A c t ,

t h e r e g u l a t i o n s o r a n a w a r d or o the rwlse be

c o n t r a r y t o a law;

( b ) s h a l l n o t b e s u c h as t o p r e v e n t or h i n d e r members

o f t h e o r g a n i z a t i o n from o b s e r v i n g t h e law or t h e

p r o v l s l o n s of an award:

I

(c ) s h a l l n o t i m p o s e upon app l i can t s fo r membersh ip ,

o r members, o f t h e o r g a n l z a t i o n , c o n d i t i o n s ,

o b l i g a t i o n s o r r e s t r l c t l o n s w h i c h , h a v l n g regard

t o t h e o b j e c t s of t h l s A c t and the pu rposes o f

t h e r e g i s t r a t l o n of o r g a n l z a t i o n s u n d e r t h i s A c t ,

are oppress lve , unreasonable or u n j u s t . "

Sec t ion l a O ( 1 ) (d ) was i n s e r t e d b y A c t No. 89 of 1 9 7 4 , s . 9 , b u t i t s

terms a r e n o t r e l e v a n t f o r p r e s e n t p u r p o s e s .

The c h a l l e n g e t o F e d e r a l R u l e s 6 and 6A c a n b e d e a l t

I

w i t h t o g e t h e r . A d e c l a r a t i o n r e l a t l n g t o F e d e r a l R u l e 6 a u t o m a t l c a l l y

a f f e c t s F e d e r a l R u l e 6A and no dec lara t ion need be made concerning

t h a t r u l e . I t was s u b m i t t e d o n b e h a l f o f A l l e n t h a t t h e r e l e v a n t

p a r t o f t h o s e r u l e s r e q u i r i n g a t l e a s t f l v e y e a r s ' membership,

imposes upon members of t h e F e d e r a t i o n c o n d l t i o n s , o b l i g a t l o n s a n d

r e s t r i c t i o n s w h i c h , h a v i n g r e g a r d t o t h e o b ~ e c t s o f t h e A c t and t h e

purposes of t h e r e g i s t r a t i o n o f o r g a n l s a c l o n s u n d e r t h e A c t , are

o p p r e s s i v e , u n r e a s o n a b l e a n d u n ~ u s t ( s . 1 4 0 ( 1 ) ( c ) o f t h e A c t ) I n

r e s p e c t o f members who a r e e l l g i b l e t o b e nominated f o r or elected

t o t h e o f f i c e of F e d e r a l S e c r e t a r y o r A s s i s t a n t F e d e r a l S e c r e t a r y .

It i s cont inuous ly n o t e d t h a t t h e r e q u i r e m e n t of havlng been a f i n a n c i a l member

for a t least two yea r s immedia t e ly p r io r t o nomlnation

and of having taken a n a c t i v e i n t e r e s t i n t h e work of the b ranch or

sub-branch for a similar p e r i o d , F e d e r a l R u l e 6 ( d ) (ii) and (iii), a r e

not be ing cha l lenged .

. /U. . .

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I -

It 1s necessary t o make a brief r e f e r e n c e t o some of t h e

r u l c s o f t h c P c d c r a t l o n . Fcdcral Rule 1 c o n s t i t u t e s t h c F e d e r a l

I Counci l as the sup reme gove rn ing body o f t he Fede ra t lon wh ich sha l l

I c o n s i s t o f 1 4 persons be ing two de lega te s f rom each o f t he b ranches ,

I ,	n e i t h e r	o f	whom	s h a l l be	the	SecreEary	of	t h e	b r a n c h ,	t h e	S e c r e t a r y
L

of e a c h b r a n c h , t h e F e d e r a l S e c r e t a r y a n d t h e A s s i s t a n t F e d e r a l

Sec re t a ry . Fede ra l Ru le 2 p r o v l d e s t h a t t h e f u n c t l o n s of t h e

Federal Counci l are " t o exercise t h e g e n e r a l c o n t r o l a n d c o n d u c t

o f t h e b u s i n e s s of t h e F e d e r a t i o n , s u b l e c t t o t h e R u l e s o f t h e

l

Federa t ion" and then l ists a number o f s p e c i f i c p o w e r s i n c l u d l n g

t h e p o w e r s " t o f o r m u l a t e t h e p o l i c y o f t h e F e d e r a t i o n i n a l l matters

a f f e c t l n g t h e I n t e r e s t s o f I t s members", ( a ) , " t o f l x the remunera t ion

( i f a n y ) o f t h e o f f i c e r s o f t h e F e d e r a l C o u n c l l " , ( c ) , t o make any

necessary approach t o t h e C o n c l l l a t l o n a n d A r b i t r a t i o n Commlssion

i n r e s p e c t o f a n y l n d u s t r l a l d i s p u t e o r a w a r d , ( h ) , t o d e l e g a t e t o

the Federa l Execut ive such of i t s powers as c o n c e r n r o u t i n e

a d m l n l s t r a t l o n , ( j ) a n d t o d e l e g a t e t o a n y b r a n c h s u c h p a r t o f i t s

powers as may be n e c e s s a r y f o r more conven len t ly conduc t lng the

a f f a i r s o f t h e F e d e r a t i o n , ( k ) . F e d e r a l R u l e 4 p r o v i d e s f o r t h e

e l e c t i o n o f d e l e g a t e s t o Federa l Councl l . The e l e c t i o n s are h e l d

b i e n n i a l l y a n d t o be e l lg ib l e fo r nomlna t lon and e l ec t ion a person

must be a f i n a n c i a l member of the Fede ra t ion and sha l l have been a

member f o r n o t less t h a n two y e a r s a n d f i n a n c l a l for n o t less than

one yea t h e f i n a n c i a l r immedia t e ly p r io r t o nomlnatlon. Any b a l l o t is limited t o

members of t h e b r a n c h e l e c t i n g t h e d e l e g a t e s . F e d e r a l

Rule 5 p r o v i d e s t h a t t h e o f f i c e r s o f t h e F e d e r a t i o n s h a l l be t h e

P r e s i d e n t , t h e V l c e - P r e s i d e n t , two T r u s t e e s , t h e F e d e r a l S e c r e t a r y

a n d t h e A s s l s t a n t F e d e r a l S e c r e t a r y . The f i r s t f o u r l i s t e d o f f i c e r s

a r e e l e c t e d by and from t h e members o f t h e F e d e r a l C o u n c i l . F e d e r a l

Rules 6, 6A and 7 p r o v i d e f o r t h e e l e c t i o n o f t h e F e d e r a l S e c r e t a r y

a n d t h e A s s i s t a n t F e d e r a l S e c r e t a r y r e s p e c t i v e l y a n d a n y b a l l o t i s

taken from a l l f m a n c i a l members o f t he Fede ra t ion . Fede ra l Ru le 9

p r o v i d e s t h a t t h e F e d e r a l C o u n c i l s h a l l meet a t least once a y e a r ,

b u t s p e c l a l m e e t i n g s may be convened, Federal Rule 1 0 , o r a p o s t a l

v o t e may Rule -11. Federal be conducted w3.thout t h e n e c e s s l t y f o r a meet ing, Federal

Rule 1 2 c o n s t i t u t e s t h e E x e c u t l v e Committee whlch

compr ises the of r ' i cersof the Federa t ion and which meets a t least

once every four months, Federal Rule 13 . Federa l Rule 15 p rovldes

f o r a b a l l o t by a l l members o€ t h e F e d e r a t i o n upon any ques t ion and

t h e r e s u l t of tlie b a l l o t 1 s binding on a l l members. Federal Rule i6

l i s t s t h e d u t i e s o f t h e P r e s i d e n t and Vlce-President. Federa l Rules

./g.. .

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17 and 18 list the duties and powers of the Federal Secretary and

Assistant Federal Secrctary and it is-sufficient to say that these

i are very extensive. Although the rules do not expressly so provide,

in practice the Federal Secretary is the advocate of the Federation

in proceedings before the Conciliatlon and Arbitration Commission and is the officer charged with lnstituting and defending such proceedings. Federal Rule 31 provides for the Federal Fund, being

the property and funds of the Federatlon the disposal of the

Federal Council and Federal Rule 32 provides for branch funds being

the property and funds of the Federation at the disposal of a branch

in accordance with the rules of the branch. Federal Rule 40 provides

that "the officers of each branch shall consist of a President,

Vice-President, Federal Secretary, Trustees and such other officers

as may be deemed necessary for the conduct of the Branch". The

reference in this rule to "Federal Secretary" cannot refer to "the

Federal Secretary" and in practice the rule has been applied as

meaning "a Branch Secretary" although called by ifferent names in

different branches. Federal Rule 42 empowers a branch to make

rules to govern its affairs and Federal Rule 45 deals with rules

to govern sub-branches. Federal Rules 46, 4 7 and 48 provide

procedures for dealing with industrial disptes and reference of

matters to industrlal trlbunals and It is sufflcient to say that

the Executive Council	is the main body	to take control	of these
matters.

The officers in the Victorian Branch are specified in

Victorian Branch Rule 3 and comprise a President, two Vice-Presidents, a General Secretary-Treasurer, an Assistant Secretary and Organiser,

an unspecified number of organisers and three Trustees. Victorlan

Branch Rule 4 provides that the branch shall be governed by a State

Executive conslsting of the officers, the ex-Presldent and four

coinmitteemen and is required to meet each month' and where possible

to refer to branch meetings for endorsement or otherwise any

decisions it makes. Victorlan Branch Rule 5 lists the duties and

powers of the branch offlcers. Victorian Branch Rules 6, 7 and 7A

provide for the nomination and election of the members to the State

Executive. Each member, apart from the General Secretary-Treasurer,

the Assistant Secretary and Organiser and the Organisers are elected

every two years and to be eligible for nomination a member must have

been a member of the Federation for at least two years and financial

for at least one year prior to the date of nomination (the Same

./10.. .

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requlrem . en t as persons nominat ing as d e l e g a tes t o t h e F e d e r a l

Counc i l ) . The General SecreLal-y-Tre'asurer i s elected for a term

of f i v e y e a r s a n d t o be e l i g i b l e for nomination t o t h a t o f f i c e a

I

i member must have had a t l e a s t t h r e e y e a r s ' c o n t i n u o u s m e m b e r s h l p

pr ior t o n o m i n a t i o n a n d h a v e t a k e n a n a c t l v e l n t e r e s t i n t h e work

of t h e b r a n c h or a sub-branch for a t least two years immediately

p r i o r t o n o m i n a t i o n . The A s s i s t a n t S e c r e t a r y a n d Organiser i s

elected for a term of f o u r y e a r s a n d e a c h o r g a n i s e r is e l e c t e d f o r

a term o f t h r e e y e a r s . To be e l i g i b l e f o r n o m i n a t i o n t o any of

t h e s e o f f l c e s , a member h a s t o s a t i s f y t h e same requl rements as a

cand ida te for t h e off ice of Genera l Secre ta ry-Treasurer . Any b a l l o t

f o r e l e c t i o n t o a n y o f t h e o f f i c e s is l i m i t e d t o f i n a n c i a l members

of the Vic tor ian Branch , Vlc tor ian Branch Rule 11 p r o v i d e s f o r

g e n e r a l m e e t i n g s o f t h e b r a n c h t o b e h e l d m o n t h l y e x c e p t i n t h e

month of J a n u a r y , t e n members t o form a quorum. Sub-branches l i k e -

wise meet month ly , th ree members t o form a quorum. Vic tor ian Branch

Rule 1 2 p rov ides for s p e c i a l m e e t l n g s of t h e b r a n c h . V i c t o r i a n

Branch Rule 19 provides f o r t h e f u n d s of the Vic to r i an Branch .

From t h i s summary, it c a n b e s e e n t h a t t h e F e d e r a l C o u n c l l

has very wide powers of po l icy making and cont ro l ye t it is on ly

w i t h r e s p e c t t o t h e o f f i c e s o f F e d e r a l S e c r e t a r y a n d A s s i s t a n t

F e d e r a l S e c r e t a r y t h a t t h ? f i v e - y e a r p e r l o d o f m e m b e r s h i p i s r e q u l r e d .

Bu t even he re the re i s no requi rement tha t the candida te must have

t a k e n a n a c t i v e i n t e r e s t i n t h e a f f a i r s o f t h e " b r a n c h s u b - b r a n c h

or o f f i c e nomination. t o which he 1s a t t a c h e d " e x c e p t f o r t h e two yea r s p reced lng

The o t h e r menbers of the Fede ra l Counc i l and Fede ra l

Execu t ive , apa r t f rom the State S e c r e t a r i e s , d o n o t h a v e t o s a t l s f y

t h e t e s t o f " a c t i v e i n t e r e s t " . The f ive yea r s ' membersh ip r equ l r e -

ment does n o t e n s u r e t h a t a p e r s o n h a s g a l n e d e x p e r l e n c e I n t h e wide

spectrum of work be ing done by pe r sons e l lg lb l e for membership of

t h e F e d e r a t i o n o r i n t h e c o n d u c t or c o n t r o l of- t h e a f f a l r s o f t h e

F e d e r a t i o n o r Its branches including sub-branches.

The F e d e r a l S e c r e t a r y h a s i m p o r t a n t a n d o n e r o u s d u t l e s t o

perform and must have a wide knowledge of the a f f a l r s of t h e

F e d e r a t i o n a n d e x p e r l e n c e I n l n d u s t r i a l matters. The same can be

said w i t h r e s p e c t t o t h e o t h e r members of the Fede ra l Counc l l and

Federa l Execut ive . The e v i d e n c e p r e s e n t e d e s t a b l l s h e d t h a t a t the

p r e s e n t t l m e , and probably a t most times, a ve ry large number of

,& . - 11 -

members of the Federation cannot satisfy the five years' continuous

i	membership requlrement for nomlnation to the office of Federal
i
t	Secretary. The requirement appears to be an arbitrary provision
i	serving no useful purpose. Having regard to the objects of the Ac ,
i
I	especially object ( f ) set out above, Federal Ru e 6(d) (i) imposes on
i	members of the Federation restridions which are oppresslve, In its
ordinary meanlng of unjustly burdensome or harsh. Further the requirement is unreasonable.

Federal Rule 17(n) is challenged on the grounds that It

l

1	is contrary to the provisions of Reg.l15(1) (d) (i) and (v) of the Regulations, s.l40(1)(a) of the Act, and is contrary to the provislons
i	I
of s.140(1) (c) of the Act. Reg.115 prescribes conditions to be
I
I	complied wlth by organisations, s.132(2) of the Act, Reg.115(2).
I
Reg.115 (1) (d) (i) (A) provides that rules of an organisation must
provide for the election f -

"(A) a committee of management of the Association

! and of each branch of the Association"

Reg.l15(l)(d) (v) provides that the rules of an organisation must

I	provide for	-
I

"(v) the control of committees of the Association and

its branches by the members of the association

and the members of the branches respectively."

There is much force in the submlssion made on behalf of

the claimant that the Act and Regulations require that all members

of a branch commlttee of management must be elected by the members

of that branch and by no one else and that insofar as the Federal

Secretary is elected by the whole membership of the Federation,

Federal Rule 17(n), 1 s contrary to the provisions of the Act and the

Regulations. Without deciding that matter, it is our op3nion that

Federal Rule 17(n) imposes on members of the Federation a conditlon

or restrlction which, having regard to the b~ects of the Act and the

purposes of the registration of organisacions under the Act, 1 s

oppressive, unreasonable and unjust. In Victoria, where there are

four organisers, the branch committee of management comprises 17

members other than the Federal Secretary. Of these 17, six are paid

officials of the Victorlan Branch electec for a term of office of

five, four or three years, while the other members are elected for a

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I .. term of two yea r s on ly . A t t h e p r e s e n t time, it a p p e a r s t h a t t h e r e

,-

is no ex-president member o f t h e S t a t e Executive. There was no

evldence as Lo the composilion of cummiLLees UT manccgelllerlt 01 o t h e r

b ranches o f t he Fede ra t ion , bu t t he i r s t ruc tu re wou ld be s i m i l a r ,

Federal Rule 4 0 . The F e d e r a l S e c r e t a r y i s a p a i d o f f l c i a l o f t h e

Fede ra t lon . He 1s e l e c t e d f o r a term of s i x years . Because o f h i s

I

p o s i t i o n , of n e c e s s i t y h e i s o r will become a man of dominance able

I t o exercise great i n f l u e n c e a n d p e r s u a s i v e a b i l i t y w l t h i n a branch

committee of management. He has a term of off ice t h r e e tlmes t h a t o f

t h e n q n - p a l d o f f i c e r s i n t h e V i c t o r i a n B r a n c h . To have such a person

a u t o m a t i c a l l y a member of ezch branch copmittee of management,

i r r e s p e c t i v e of the v i ews of t h e members o f t he b ranch , is c o n t r a r y

I

t o t h e p r o v i s i o n s of s.140(1) (c ) of t h e A c t .

Vic tor ian Branch Rule 2 1 is cha l l enged on the g rounds tha t

it i s c o n t r a r y t o t h e p r o v i s i o n s o f R e g . l l S ( 1 ) ( d ) ( v ) i n s o f a r as it .

p r o v i d e s t h a t a b a l l o t of members of the b ranch is s u b j e c t to t h e

!

consent of t h e S t a t e E x e c u t i v e , s . 1 4 0 ( 1 ) (a) of t h e A c t , and i s con t r a ry

I t o t h e p r o v i s i o n s of s.140 (1) (c ) of t h e A c t . Procedures under Rule 2 1

are i n s t i t u t e d a t a meetmg of the b ranch and are l i m i t e d t o "a measure

or measu res" to be in t roduced . It f o l l o w s t h a t a change from an

e x i s t i n g p o s i t i o n w l t h i n a branch i s being contemplated and 1s being

in t roduced . A b a l l o t c a n b e h e l d o n l y when the branch meet ing

d e c i d e s t h a t s u c h a measure or measures will s u b s t a n t i a l l y a f f e c t

or will b e l i k e l y t o s u b s t a n t i a l l y a f f e c t " t h e welfare of members

genera l ly" . Wi th a membershlp of some 18 ,000 pe r sons , it is

i m p r a c t i c a b l e t o have a genera l meet ing a t which a l l members a r e

a b l e t o a t t end . Neve r the l e s s , Ktile 2 1 p u r p o r t s t o g l v e a power o f

v e t o t o t h e State Execut ive so as t o e n a b l e t h e S t a t e E x e c u t i v e

t o prevent such a ba l lo t f rom be ing he ld . V lc to r i an Branch Ru le 2 1 ,

i n s o f a r as it p u r p o r t s t o empower t h e S t a t e E x e c u t i v e t o d e c i d e

whether such a b a l l o t s h o u l d b e h e l d , d o e s n o t p r o v i d e f o r t h e

c o n t r o l of the commit tee of management of the Victor ian Branch by

t h e members of t h e V i c t o r i a n B r a n c h a n d t o t h a t e x t e n t i s con t r a ry

t o t h e p r o v i s i o n s of s.140 (1) (a ) o f t h e A c t , see Mackenzie v.

Admin i s t r a t lve & Clerical O f f l c e r s ' Association, Commonweaith P u b l i c

S e r v i c e ( 1 9 6 2 ) 5 F'.L.R. 342 pe r Joske J. a t p. 364-5. Likevnse, the

r u l e i s c o n t r a r y t o t h e p r o v i s i o n s of . 140(1) (c) of t h e A c t i n t h a t

it imposes upon members of the Federa t ion conditions o r r e s t r i c t l o n s

w h i c h , h a v i n g r e g a r d t o t h e o b j e c t s o f t h e A c t , a r e n p p r e s s i v e a n d

unreasonab1.e I n t h a t p u r p o r t e d r i g h t s g i v e n t o memb may be

nega t ived by t he S t a t e Execu t ive . A t t en t ion i s d ra - 1 t o t h e € a c t

t ha t V ic to r l an Branch Ru le 2 1 does no t make a n y p r o i s i o n f o r

./13. -.

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r -

t h e g i v i n g of e f f e c t t o t h e r e s u l t of any b a l l o t h e l d , c/f F e d e r a l

Rule 15	(d)	.
We t u r n now to a c o n s i d e r a t l o n o f t h e claim made under

s.141 of t h e A c t . A t a s p e c i a l m e e t i n g of t h e S ta te Execut ive he ld

o n 1 9 t h A p r i l , 1 9 7 7 , t h e f o l l o w i n g r e s o l u t i o n was carrlecl unanimously -

I,

The Genera l Sec re t a ry i s d l r e c t e d t o write t o

the Sec re t a ry o f t he Gee long Sub-Branch in the fo l lowing

terms :-

1 (l) Research a t t h e B r a n c h O f f i c e r e v e a l s t h a t w h a t

we have been led t o b e l l e v e f o r some years , namely the

l e g a l e x i s t a n c e o f y o u r Sub-Branch under t h e R u l e s o f t h e

F e d e r a t i o n , t o be Inco r rec t . It a p p e a r s t h a t t h e B r a n c h

Execu t lve o f t he day neve r r ece ived the appropr l a t e

r e q u i s i t i o n a n d of cour se neve r cons ide red an appropr i a t e

r e q u i s i t l o n or	g r a n t e d t h e s t a t u s	of	a	Sub-Branch	t o any
such body.

You are t h e r e f o r e

(A) Ca l l ed upon t o appea r be fo re t he S t a t e Execu t ive

on t h e 4 t h of May, 1 9 7 7 , t o show cause why you

and your purported Sub-Branch Executive should

con t lnue to be r ecogn i sed as such o r

(B) A l t e r n a t i v e l y b r l n g b e f o r e t h e State Execut ive

a r e q u i s i t i o n f r o m s i x o r more adul t employees

wi th in the meanmg of Federa l Rule 45 seek ing

t h e g r a n t of Sub-Branch s t a t u s for t h e S t a t e

E x e c u t l v e ' s c o n s i d e r a t i o n . I n o r d e r t o assist

t h e State E x e c u t l v e i n i t s d e l l b e r a t i o n s t h e

r e q u i s i t i o n s h o u l d set o u t t h e t r a d e , o c c u p a t i o n s

or c a l l i n g s o f t h e members sough t t o be cove red

by the suggested Sub-Branch a n d / o r t h e p r e c i s e

geographlca l area s o u g h t t o be covered.

(2) Notwlthstanding (1) above and w i thou p re jud ice t t o

t h e a s s e r t i o n s t h e r e made you are called upon pur suan t t o

R u l e 4 5 ( d ) o f t h e F e d e r a l R u l e s , t o p a y f o r t h w i t h t o t h e

Branch :-

(a) The $32,509.75 disclosed by your ba lance

s h e e t of 31/12/'76 ( less $200), and

(b) A l l s u s t e n t a t i o n fees due for your purpor ted

members f o r t h e p e r i o d t o 3 1 / 3 / ' 7 7 ,

(c) A l l s u s t e n t a t i o n f e e s n o t a l r e a d y p a i d f o r

your f inanc la l membersh ip ove r t he pe r iod

1 /1 /1974 t o 31/12/1976.

( 3 ) You are t o a c c o u n t I n w r i t i n g w i t h i n 28 days o f

. r e c e i p t o f n o t l c e of t h l s d l r e c t i o n for a l l monles paid

out by you s ince 1 /1 /1970 for purposes o ther than wages ,

t e l e p h o n e e x p e n s e s , g a s , l l g h t , e l e c t r i c l t y , s t a t l o n e r y

o r	r e n t .
( 4 ) You are n o t t o make any payments from your funds

f o r t h e p u r p o s e s o f s e e k l n g legal a i d o r a d v l c e for any

p u r p o s e w i t h o u t t h e c o n s e n t o f t h e B r a n c h b u t i n p a r t i c u l a r no monles are to be made available e i t h e r d i r e c t l y o r

. / 1 4 . . .

i n d i r e c t l y t o t h e r e s p o n d e n t s o r t h e i r s o l i c i t o r s i n

Johns V A l l en & Others (V N o . 7 .of 1 9 7 7 ) o r any High

Court proceedlngs re la t ive t h e r e t o w i t h o u t t h e c o n s e n t

of	the Branch.
(5) You are i n t h i n 7 days o f t he 6ate of your state-

men t pu r suan t t o ( 3 ) above t o d e l l v e r to the Branch o r

it? Represen ta t ives a l l books, b a n k s t a t e m e n t s , r e c e i p t s

and pape r s such a s will allow a p r o p e r a u d i t t o be made of

t h e S u b - B r a n c h ' s a f f a i r s s l n c e 1 /1 /1970 .

( 6 ) You wlll terminate the employment of any person

t a k e n l n t o employment s i n c e t h e d i r e c t i o n l m p a r t e d b y

l e t t e r dated 9th September , 1 9 7 6 .

( 7 ) You will co-ope ra t e w i th and p rov ide o f f i ce

f a c i l i t i e s f o r any Branch Organlsers , Off ic ia l s or

Representa t ives whlch v i s l t your o f f i ce and will i n s t r u c t

your clerical s t a f f a c c o r d i n g l y . "

On t h e same d a y , t h e V i c t o r i a n B r a n c h S e c r e t a r y ( h e r e m a f t e r

c a l l e d " J a r r a d " ) f o r w a r d e d a c o p y o f t h e r e s o l u t i o n t o A l l e n , b e i n g

t h e S e c r e t a r y b e f o r e t h e C o u r t of the Geelong Sub-Branch. The two mat te r s a rgued . ,

were for o r d e r s f i r s t l y d i r e c t i n g t h e r e s p o n d e n t s ,

o t h e r t h a n t h e F e d e r a t l o n , t o p e r f o r m a n d o b s e r v e t h e r u l e s of t h e

Fede ra t ion by t r e a t i n g a s n u l l and void and of no force o r e f fec t

paragraphs numbered 4 t o 7 i n c l u s i v e o f t h e r e s o l u t i o n , a n d , s e c o n d l y ,

t h a t t h e y p e r f o r m a n d o b s e r v e t h e r u l e s o f t h e o r g a n i s a t i o n by ceas lng ,

from e x e r c i s l n g or powers and p r lv l l eges o f , p u r p o r t l n g t o exercise a n y o f t h e r i g h t s , d u t i e s ,

ar p r o p e r l y e x e r c i s a b l e by o r p e r t a i n m g to ,

t h e committee of management of the Geelong Sub-Branch and of a n y f u l l -

time o f f i c i a l o r o f f i c i a l s employed by the Geelong Sub-Branch.

P r i o r t o t h e h e a r i n g , A l l e n f i l e d a s t a t emen t o f bases

on which o f t h e s t a t e m e n t c l a i m e d t h a t t h e r e s o l u t i o n the o rders sought were claimed, Sub-paragraphs l (a) and (b)

was passed by persons

who were n o t e l l g l b l e t o v o t e , t h e v a l i d i t y o f t h e e l e c t i o n of some

o f t h e members o f t he S ta t e Execu t ive hav ing been cha l l enged In

.-

Al l en v . t he Fede ra t lon . On 26th August, 1 9 7 7 , t he Cour t gave

judgment i n t h a t m a t t e r a n d r u l e d t h a t t h e r e was no I r r e g u l a r i t y .

Accord lng ly , t he c l a ims con ta ined in these two sub-paragraphs cannot

b e r e l i e d upon i n t h e s e p r o c e e d i n g s .

Llkewise , the clalm in sub-paragraph 1 ( J ) , w h i c h r e l a t e d

t o a d i smis sa l f rom employment of a n a l l e g e d o f f i c e r of the Geelong

Sub-Branch , has no bas i s fo l lowing the dec i s ion in Johns v . A l l en ,

(supra).

./15.. .

,. - 15 -

The b a s e s I n s u p p o r t of t h e first order sought clalmed

t h a t t h e r e s o l u t i o n was n o t made bona f i d e t o r t h e p u r p o s e s o f t h e

powers conferred upon t h e S t a t e E x e c u t i v e b y t h e r u l e s o f t h e

Federat ion, sub-paragraph l ( e ) o f t h e s t a t e m e n t , a n d p a r t i c u l a r s

were g iven o f t he a l l eged pu rposes fo r t he mak ing o f t he r e so lu t ion -

" (i) to prevent he Geelong Sub-Branch from apply ing

for or the Fede ra t ion and /o r f r o m o b t a i n i n g t h e s t a t u s o f a Branch of

t o depr ive the Gee long Sub-

B r a n c h o f t h a t s u b s t a n t i a l s t a t u s t o which it i s

e n t i t l e d u n d e r t h e R u l e s a n d t o usurp i t s proper

funct ions and powers ; and/or

(ii) to punish the Geelong Sub-Branch for havlng

c r i t i c i z e d t h e F e d e r a l S e c r e t a r y o f t h e F e d e r a t i o n ;

and/or

(iii) t o dissuade t h e legal proceedings referred the Geelong Sub-Branch f rom pursuing

t o t h e r e i n , o r t o

p reven t it from so doing; and/or

( i v ) t o prevent the Geelong Sub-Branch f rom being able

t o o p e r a t e e f f e c t i v e l y o r a t a l l , w i t h o u t t h e

consent of the Vic tor ian Branch; and/or

(v) t o t a k e c o n t r o l of t h e a f fa i r s of the Geelong Sub-

Branch a l though the requi rements la id down by

Rule 4 5 (1) 3 for such a take over had not been

s a t i s f i e d . "

F u r t h e r , it was c l a i m e d t h a t t h e r e s o l u t i o n was m v a l i d

by reason of t h e f a c t ' t h a t Townsend was p r e s e n t , moved t h e r e s o l u t i o n

and played a dornlnant role i n t h e p r o c e e d l n g s when by reason of

s . l 4 0 ( 1 ) ( c ) , he was n o t v a l i d l y a member of t h e S t a t e E x e c u t i v e ,

sub-paragraph l ( f ) o f t h e s t a t e m e n t . O t h e r p a r t i c u l a r s I n s u p p o r t

of i n v a l i d l t y d o n o t a f f e c t t h e v a l i d l t y were g i v e n I n t h i s s u b - p a r a g r a p h b u t , I n o u r o p i n l o n ,

of t h e r e s o l u t i o n a n d n o f u r t h e r r e f e r e n c e

need be made t o them.

F u r t h e r , it was c l a i m e d t h a t t h e r e s o l u t i o n vas i n v a l l d

s i n c e t h e r u l e s o f n a t u r a l j u s t i c e r e q u i r e d t h a t t h e G e e l o n g Sub-

Branch should have been g iven not ice of the proposa l t o p a s s t h e

r e so lu t ion and the r easons the re fo r , and shou ld have been g iven a

r e a s o n a b l e o p p o r t u n l t y t o be hea rd In r e l a t ion the re to , sub -pa rag raph

1 ( g ) o f t h e s t a t e m e n t .

F u r t h e r , it xras claimed t h a t t h e r e s o l u t i o n was i n v a l i d

because it was procured by fa lse s t a t emen t s of fact and by m i s -

r ep resen ta t ions nade by Townsend and Ja r r ad , sub -pa rag raph l (h ) of

t h e s t a t e m e n t , P a r t i c u l a r s were g i v e n b u t , I n o u r o p i n i o n , t h e s e

, /16. . .

0 - 16 -

fnatfers are r e l e v a n t i n t h e c o n s l d e r a t i o n of t h e matters l i s t e d I n

sub-paragraphs 1 (e) and ( f ) a n d wlll n o t b e c o n s l d e r e d s e p a r a t e l y .

F i n a l l y , it was c l a i m e d t h a t t h e r e s o l u t i o n was n o t w i t h i n

the powers confe r r ed on the S ta t e Execu t ive by Federa l Rule 4 5 , sub-

paragraph 1 (i) of t h e s t a t e m e n t , a n d p a r t l c u l a r s were g i r ? n .

The b a s e s i n s u p p o r t o f t h e s e c o n d o r d e r s o u g h t c l a i m e d

t h a t b reason of a series of fac ts l i s t e d , t h e members o f t h e S t a t e

Y

Execu t ive , fo r a p e r i o d o f time s l n c e a t least September, 1972, had

been at tempting t o deprlve the Geelong Sub-Branch "of t h e s u b s t a n t i a l

s t a t u s t o which it 1s e n t i t l e d u n d e r t h e r u l e s a n d t o u s u r p t h e

func t ions and powers confer red on the Sub-Branch , Its committee of

management and o f f i c l a l s b y t h e r u l e s " , a n d t h a t u n l e s s r e s t r a i n e d

t h e y w o u l d c o n t i n u e i n t h i s c o n d u c t a n d t h a t a c c o r d i n g l y A l l e n 1 s

e n t i t l e d t o t h e o r d e r s o u g h t , p a r a g r a p h 2 of t h e s t a t e m e n t .

A p r e l l m l n a r y matter needs t o be consldered, namely whether

the Geelong Sub-Branch had been va l ld ly formed or no t . For over 4 0

y e a r s , t h e F e d e r a t i o n h a s p r o c e e d e d o n t h e b a s l s t h a t t h e G e e l o n g

Sub-Branch was v a l i d l y i n e x i s t e n c e a n d t h e cases r e f e r r e d t o a t t h e

beginning of t h e s e r e a s o n s e a c h p r o c e e d e d o n t h a t b a s l s . A t t h e

hea r ing , Mr. Harr i son who appeared for t h e r e s p o n d e n t s o t h e r t h a n

Bur t , McXay tha t the Geelong Sub-Branch and Slev ln , announced tha t he would not be contending

was n o t v a l i d l y formed and accord ingly

t h a t Townsend would no t be p roceed lng wl th the two a p p l i c a t l o n s b e i n g

Matters V No. 1 6 and V NO. 1 7 of 1977 inso fa r as t h e l a t t e r r e l a t e d

t o the Geelong b y t h e r e s p o n d e n t s a n d I n p a r t l c u l a r n e i t h e r Sub-Branch. A t t h e h e a r i n g , n o witnesses were c a l l e d

Townsend nor Ja r r ad gave

ev idence t o j u s t i f y t h e b a s l s of t h e a l l e g a t l o n s c o n t a i n e d i n

paragraph 1 I n a n a t t e m p t t o e s t a b l l s h t h e v a l l d i t y o f t h e - f o r m a t i o n o f t h e o f t h e r e s o l u t i o n n o r o f t h e r e s e a r c h r e f e r r e d t o t h e r e i n .

Geelong Sub-Branch, Allen, by subpoena, sought the production of the

minutes of the S ta t e Execu t ive and o f t he Vic to r l an Branch . The

m i n u t e s o f t h e State Executive were not produced, it b e i n g a l l e g e d

tha t t the year 1936 hey had been lo s t . Mlnu tes made o f t h e V i c t o r i a n B r a n c h f o r

were produced and these mlnutes made r e f e r e n c e t o

off icers of the Vic to r l an Branch a t t end ing mee t lngs a t Gee long

conce rned wi th the e s t ab l i shmen t of a sub-branch a t Geelong and the

encouragement 02 new members, e l e c t l o n s a n d g e n e r a l l y f o r a s s l s t m g

i n t h e c o n d u c t o f cons l s t en t w i th the va l ld fo rma t ion o f t he Gee long Sub-Branch . t h e a f f a i r s of the sub-branch. A l l t h l s i s

, /17.

Y

< . - 11 -

There was t h e n I n f o r c e , t h e p a r t i e s no ev ldence o f t he appropr i a t e ru l e of t h e F e d e r a t l o n

t o these proceedings assuming it t o be

similar t o t h e e x l s t l n g F e d e r a l R u l e 45.

I n a d d i t i o n , a M r . Kenworthy gave evidence that in 1936

he was employed as an assembler i n t h e s p r l n g d e p a r t m e n t a t Ford

Motor Works i n Geelong and t h a t h e a t t e n d e d a number o f mee t ings In

Geelong a t t h a t time a t which the State P r e s i d e n t a n d o t h e r o f f i c e r s

o f t he Vlc to r l an Branch o f t he Fede ra t lon , t hen known as t h e Coach-

makers Employees' Federation, were p resen t g iv lng ln fo rma t lon and he lp

w i t h r e s p e c t t o the Geelong Sub-Branch and encouragement for the

enrolment of members, The Sub-Branch about t h a t time conducted an

e l e c t i o n f o r a commlttee of management and shortly afterwards made

by-laws and employed a f u l l - t i m e p a i d s e c r e t a r y . On t h i s e v i d e n c e

and r e ly lng upon the presumpt ion of r e g u l a r i t y , w e f i n d t h a t t h e

Geelong Sub-Branch was v a l i d l y f o r m e d i n o r a b o u t t h e y e a r 1 9 3 6 .

Before makmg f indlngs of fac t , it i s d e s i r a b l e t o make

I f u r t h e r r e f e r e n c e t o t h e r u l e s o f t h e F e d e r a t i o n . F e d e r a l R u l e 2 4

makes p r o v i s i o n for e n t r a n c e fees whi le Federa l Rule 25 provldes

f o r a n n u a l c o n t r l b u t l o n s f o r members, t h e amount of which i s t o be

determined by the Fede ra l Counc l l a t its m e e t i n g i n March i n e a c h

yea r . The o t h e r r e c e i p t s ru l e s p rov i ' de t ha t t he en t r ance f ees , con t r lbu t ions and

are payable t o t h e B r a n c h S e c r e t a r y o r , i f t h e

member 1s a t t a c h e d t o a sub-branch, t o t h e S e c r e t a r y o f t h e Sub-

Branch and s h a l l b e p a i d i n t o t h e b a n k i n t h e name of the Branch,

Federa l Rule 28 , Fede ra l Ru le 32 (b ) . Fede ra l Ru le 31 e s t ab l i shes

t h r e e main funds to be a t t h e d l s p o s a l o f t h e F e d e r a l C o u n c i l . The

Federa l Overseas Fund 1s se rv lced by a p r o p o r t i o n of a l l e n t r a n c e

fees rece ived by b ranches and b ranch sec re t a r l e s are r e q u i r e d t o pay

t h a t p r o p o r t i o n t o t h e F e d e r a l S e c r e t a r y e a c h q u a r t e r , F e d e r a l R u l e

31 (b) . There 1s no expres s p rov l s lon tha t subLbranch sec re t a r l e s

are t o pay any p ropor t ion o f en t r ance f ees to b ranch secretaries.

The F e d e r a l Overseas Fund is to be expended for t h e p u r p o s e s s p e c i f i e d

in Fede fees" ra l Ru le 31 (b ) . In Fede ra l Ru le 31 , t he ph rase " sus t en ta t lon

means t h a t p r o p o r t i o n o f c o n t r i b u t l o n s w h i c h a r e t o b e p a l d b y

branch secretaries e a c h q u a r t e r t o t h e F e d e r a l o f f ice . The amount of

t h e c o n t r l b u t l o n s is d e t e r m i n e d b y t h e F e d e r a l C o u n c i l , F r d e r a l R u l e

25 , and p r o p o r t l o n o f t h e c o n t r i b u t i o n s s h a l l b e p a i d b y a t t h e same nlee t lng , Federa l Couxi l de te rmines what

way o f s u s t e r -,:<on

fees t o t h e F e d e r a l o f f i c e , F e d e r a l R u l e 3 1 ( c ) (i). A sub-bra1

./18.. .

L i	r	-	1 8 -
r

s e c r e t a r y i s r e q u i r e d t o fo rward to the b ranch sec re t a ry x r l th in 1 4

days of t h c cnd of c n c h q u n r c c r , s u s t c n t n t i o n fees received by h l m

as p a r t t h e e x l s t i n g r u l e s o f t h e c o n t r i b u t i o n s , F e d e r a l R u l e 3 1 ( c ) (ii). P r i o r t o

comlng l n t o f o r c e l n t h e y e a r 1 9 7 6 , t h e e q u i v a l e n t

Federa l Rule , then numbered 33 ,conta ined no such provls ion , see

A l l e n v . J a r r a d P r i n t No. C3849 pages 2-3. The sustentacion fees

are used to se rv i ce the Fede ra l Con t ingen t Fund , Fede ra l Ru le 31 (d )

and the Fede ra l Counc l l Fund , Fede ra l Ru le 31 (e ) , each to be expended

f o r t h e p u r p o s e s t h e r e i n s p e c i f i e d . F e d e r a l R u l e 32 p r o v i d e s f o r

1

Branch Funds and t h l s r u l e seems t o assume tha t mon ies r ece lved by

sub-branches remain In the name of the branch, Federal Rule 32(b) , and

b e s u b j e c t t o t h e e v e n t u a l c o n t r o l " i n a c c o r d a n c e w i t h t h e r u l e s o f

t he b ranch" i m p o s e s s p e c i a l r e s t r l c t i o n s by the b ranch , Fede ra l Ru le 32 (a ) . Fede ra l Ru le 36

on t h e e x p e n d i t u r e o f b r a n c h f u n d s i n

excess of $ 2 0 0 excep t f o r ord lnary expenses . Federa l Rule 4 1 p rov ides

for the exchange of minutes between a branch and Its sub-branches.

Federal Rule 45 p r o v i d e s r u l e s t o govern sub-branches.

Paragraph (a ) p rov ldes f o r t h e f o r m a t i o n of sub-branches and provldes

f u r t h e r t h a t a sub-branch "sha l l a t a l l times be unde r the con t ro l o f

a n d t a k e i n s t r u c t l o n s from the b ranch" . Pa rag raph (b ) p rov ides fo r

the commlt tee (e) a r e as fo l lows of management of a sub-branch. Paragraphs ( c ) , ( d ) and

:-

,I

Keeping of Books

(c) A l l books , documents , re turn shee ts , and every th ing

necessary i n c o n n e c t l o n w i t h t h e working of Sub-

Branches, s h a l l b e o f a unlform na ture and s h a l l

be supp l l ed by the Branch and sha l l r ema in the

proper ty o f the Branch . The Branch Commlttee s h a l l

have power t o au tho r i se che Branch Sec re t a ry t o

send for the books of any Sub-Branch for the purpose

of a u d l t i n g or s e e i n g t h a t t h e y are k e p t i n a proper

manner. .-

(d) The Committee of each Sub-Branch a t the end o f each

ha l f -yea r a f te r de f ray log the work ing and o the r

expenses of the l r Sub-Branch , sha l l forward wi th in

l twenty-eight days t o the Branch Sec re t a ry a l l funds

above $ 2 0 . Provided tha t where a Sub-Branch employs

a f u l l - t i m e o f f l c i a l o r officials t h e amount t o b e

r e t a l n e d by such Sub-Branch may b e i n excess of $20

and in such case t h e amount t o b e r e t a l n e d s h a l l b e

determlned by the Branch in General Meet lng.

Sub-Branch Returns

(e) The Secre ta ry o f each Sub-Branch sha l l fo rward to

the Branch Sec re t a ry a c o r r e c t b a l a n c e s h e e t , d u l y

a u d i t e d a n d s i g n e d a t t h e e n d of each ha l f -year ,

and also any o the r In fo rmac ion r equ l r ed by the Branch

Committee of Management. " ,/19. ..

L-. - 1.9 -

I n t h e p r e s e n t case, t h e amount t o be r e t a ined by the Gee long Sub-

Branch has been determined a t $200. . P a r a g r a p h ( f ) a u t h o r l s e s

b r a n c h e s t o g l v e f i n a n c i a l a s s i s t a n c e t o s u b - b r a n c h e s . P a r a g r a p h

!

(g ) imposes r e s t r i c t lons on a sub-branch i n r e l a t l o n t o t h e l s s u e

of documen t s In the name o f t h e F e d e r a t i o n or o f a branch wl thout

t h e a p ~ r o v a l o f t h e b r a n c h committee of management. Paragraph (h)

a u t h o r l s e s s u b - b r a n c h e s t o make by-laws but these must be approved

by the t h e r e l e v a n t o n e s f o r p r e s e n t p u r p o s e s b e i n g b ranch . Paragraph (1) l lsts a number o f s p e c i f i c matters,

:-

" (i) Wi thou t l imi t ing the gene ra l i t y o f any o f t he powers

o f a F e d e r a l o r S t a t e R u l e a n d i n a d d l t l o n t o a n y s u c h Branch Committee of Management conta ined In any

power a Branch Committee of Management s h a l l h a v e t h e

f o l l o t r i n g p o w e r s I n r e l a t i o n t o a Sub-Branch :-

l. To ca l l fo r and /o r take posses s ion of a l l

ar t ic les of proper ty and inoney, records, books,

papers used by or i n c o n n e c t l o n w i t h t h e affalrs

of a Sub-Branch and t o e n t e r t h e o f f i c e s o r

premlses of a Sub-Branch f o r any such purpose.

2 . To r equ l r e f rom the o f f i ce r s and employees of a

Sub-Branch whether i n w r l t l n g o r o r a l l y I n f o r m -

a t i o n r e l a t i n g t o t h e a f f a i r s o f a Sub-Branch.

3 . Wherever a Sub-Branch f a i l s t o o b s e r v e t h e R u l e s

o f t h e F e d e r a t i o n o r o f t h e B r a n c h , t h e	By-Laws,
r e g u l a t i o n s , d e c i s i o n s o r d i ' r e c t l o n s o f a n y

F e d e r a l o r State au thor l ty , the Branch Commit tee

of Managemept may take cont ro l of and conduct and

admln l s t e r t h e a f f a l r s of such Sub-Branch f o r t h e

purpose of g i v i n g e f fec t t o s u c h r u l e s , r e g u l a t l o n s ,

d e c l s i o n s o r d l r e c t i o n s . I n s u c h case the Branch

i n g e n e r a l m e e t i n g or the Branch Commlttee o f

Management may g i v e a n y n e c e s s a r y d i r e c t i o n s f o r

t h e c o n d u c t o f t h e a f f a l r s of t h e Sub-Branch.

4 ........ ........

5. ........ .......

6 . I n

a n y o f Branch t h e f o r e g o l n g cases t h e S e c r e t a r y o f t h e

s h a l l b e t h e p e r s o n t o c a r r y o u t t h e

dec is lon of the Branch and a l l off icers and members

of a aid and asslst h l m . Sub-Branch s h a l l r e c o g n i s e t h l s a u t h o r i c y a n d

The Branch Comwittee of

Management may if it t h l n k s f l t , appo ln t one or

more members of the Branch to advise and assist t h e

S e c r e t a r y o r t o a c t a s	a	Commlttee	t o	advise and
assist him. "

Sub-paragraphs 4 and 5 relate t o t h e making of regulations and by-laws.

Victor ian Branch Rule 1 9 relates t o b r a n c h f u n d s a n d m s o f a r as It

dea l s w i th the ?unds o f sub -b ranches , i s complementary t o and

c o n s l s t e n t w i t h F e d e r a l Rules 32 and 45 ( d ) .

./20.. .

-

. ; . - 20 -

I d c-.

Much d e t a i l e d e v i d e n c e was given on behal f o f Al len , bu t

it i s n e c e s s a r y o n l y t o g l v e a summary of t h e f a c t s a n d i n f e r e n c e s

d r a i n . I t i s s u f f i c l e n t t o s a y t h a t i n s u b s t a n c e w e f m d t h a t t h e

w i t n e s s e s c a l l e d vere t e l l i n g t h e t r u t h t o t h e b e s t o f t h e i r

r e c o l l e c t i o n a n d we a c c e p t t h e i r e v l d e n c e as b e m g t r u e . I n comlng

t o t h l s view, we are suppor ted by t h e f a c t t h a t a l t h o u g h b o t h Townsend

and Ja r r ad were p r e s e n t I n C o u r t , n e l c h e r was c a l l e d t o g lve ev iaence

t o r e b u t t h e e v i d e n c e called on behalf of A l l e n o r t o r e b u t I n f e r e n c e s

clalmed to be drawn from the evidence so given and no explanat ion

was g i v e n a s t o why t h e y d i d n o t g i v e e v i d e n c e :- see O'Donnell v.

Reichard (1975) V.R . 916 , Jones v. Dunkel (1959) 101 C.L.R. 298.

Over many y e a r s a n d i n p a r t l c u l a r s i n c e 1 9 7 0 , t he re have

been tensions between the Victor ian Branch and the Geelong Sub-Branch.

One area s h o u l d b e c o n s t i t u t e d of c o n f l i c t h a s r e l a t e d t o whether the Geelong Sub-Branch

a b ranch o f t he Fede ra t lon or not . Another

area r e l a t e d t o t h e d e g r e e o f c o n t r o l t o be e x e r c i s e d by t h e V i c t o r l a n

Branch or t h e S ta te Execu t lve ove r t he a f f a i r s of the Geelong Sub-

Branch. Thls l a s t a s p e c t h a s i n v o l v e d q u e s t i o n s o f how t h e c o n t r o l

i s t o be exercised, whether the Geelong Sub-Branch can be " taken o v e r " b y t h e V i c t o r l a n B r a n c h o r t h e S t a t e E x e c u t i v e , w h e t h e r t h e

Geelong Sub-Branch can elect Its own o r g a n i s e r s o r m u s t a c c e p t

o r g a n i s e r s e l e c t e d by the Victor lan Branch and what curbs , i f any,

t h e V i c t o r i a n B r a n c h o r S t a t e E x e c u t i v e c a n p u t o n e x p e n d i t u r e s Ly

the Geelong Sub-Branch; Allen v. Ja r rad , supra , Al len v . I lacWhlr te r ,

supra , Johns v . Al len , supra , Al len v . the Federa t ion , supra , a n d

Behan v. t h e F e d e r a t l o n , 1 9 t h November, 1 9 7 6 , b e i n g i l l u s t r a t i o n s

of t h e s e c o n f l i c t s a n d t e n s i o n s .

S i n c e t h e s i x month pe r iod end ing 31s t December, 1 9 6 9 , a t

least , the Geelong Sub-Branch , In compl lance wi th the ru les of t h e

Fede ra t ion , has forwarded t o t h e V l c t o r i a n B r a n c h S e c r e t a r y a l l funds

above the ag reed amoun t and ce r t a in o the r funds for s p e c i a l p u r p o s e s

which were o f t he Vic to r l an Branch Sec re t a ry , t oge the r w i th aud i t ed ba l ance r e t a i n e d w l t h t h e c o n s e n t e i t h e r e x p r e s s l y o r i m p l i e d l y

s h e e t s a s a t the 30th June and 31s t December o f e a c h y e a r r e l a t l n g

t o t h e a E f a i r s o f t h e S u b - B r a n c h . From t l m e t o t l m e , q u e s t i o n s were

r a i s e d by t h e State Execut ive concernlng matters conta ined m t h e

b a l a n c e s h e e t s a n d t h e s e q u e r i e s were always answered. On occas ions ,

t h e a u d i t o r p r o v i d e d e x p l a n a t l o n s t o t h e Scate Executlve. Prior

t o t h e amendments t o t h e F e d e r a l R u l e s made I n 1 9 7 6 , t h e r e was no

./21.. .

- 21 -

obl iga t ion imposed on the Geelong Sub-Branch t o p a y s u s t e c t a t i o n

fees, as such , t o t h e V i c t o r l a n B r a n c h . T h e b a l a n c e o f f u n d s , s u b ~ e c t

t o t h e s p e c i f i c f u n d s r e t a i n e d , was fo rwarded each ha l f yea r , a l t hough

on o c c a s i o n s , o w i n g t o p r a c t l c a l . d i f f i c u l t i e s , t h e p a y m e n t vlas delayed

beyond che p rob lem fac ing the S ta t e Execu t ive twenty-e ight days re fe r red t o i n F e d e r a l R u l e 4 5 ( d ) . The

was how t o e n s u r e t h a t t h e G e e l o n g

Sub-Branch be restrlcted i n t h e l n c u r r i n g o f w o r k i n g a n d o t h e r e x p e n s e s ,

so as t o i n c r e a s e t h e amount t o b e p a i d by t h e Sub-Branch t o t h e

Vic tor ian Branch .

By let ter d a t e d Gth A p r i l , 1 9 7 7 , f rom Allen t o Townsend, a

warning had been glven that the Geelong Sub-Branch would renew Its

a t t e m p t t o become a b ranch o f t he Fede ra t ion and wou ld cha l l enge the

v a l i d i t y o f c e r t a i n F e d e r a l R u l e s i n c l u d i n g t h e r u l e r e l a t i n g t o t h e

o f f i c e of F e d e r a l S e c r e t a r y . The r e l a t i o n s h i p b e t w e e n t h e V l c t o r i a n

Branch and conversat ions between the Geelong Sub-Branch had been the s u b ~ e c t of a number o f

Townsend a n d t h e F e d e r a l P r e s i d e n t , Thompson,

and between Townsend a n d J a r r a d r e l a t i n g t o t h e r e l a t l o n s h l p a n d t o

whether the payment of funds was be ing made by the Geelong Sub-Branch

c o r r e c t l y , b u t t h e r e i s no d i r e c t e v i d e n c e as t o w h a t t h e s e t h r e e

o f f i ce r s sugges t ed shou ld be done .

On t h e 1 8 t h A p r l l , 1 9 7 7 , a meet lng was held between Townsend

a n d t h e p a l d o f f l c e r s of the Vlc to r l an Branch . A t t h l s m e e t l n g

Townsend said t h a t t h e r e were moves by the Geelong Sub-Branch agalnst

f e d e r a l officers. H e r eminded those p re sen t o f t he t ens ions and

conf l i c t s wh lch had ex i s t ed and s t l l l e x l s t e d b e t w e e n t h e V l c t o r l a n

Branch and the Geelong Sub-Branch and suggested it was tlme t h e y were

b r o u g h t t o a n e n d . H e h l n t e d t h a t lt was b e t t e r f o r t h e p a i d o f f l c e r s

t o s l d c w l t h t h e V i c t o r i a n B r a n c h smce the Vlc to r i an Branch electe?

t h o s e p a i d o f f i c e r s . I m m e d l a t e l y p r i o r t o t h e s p e c i a l m e e t i n g o f

t h e State Execu t ive on 19 th Apr i l , t he re was a p r iva t e mee t ing o f

members excep t t hose members who were know1 t o be favourably dlsposed

t o t h e Geelong Sub-Branch. The n o t i c e c a l l i n g t h e s p e c i a l r n e e t l n g

gave no i n d i c a t i o n o f t h e m a t t e r s t o be cons lde red a t t h a t m e e t i n g .

Townsend v a s p r e s e n t , p u r p o r t i n g t o r e l y upon F e d e r a l Rule 1 7 ( n ) ,

and moved t h e r e s o l u t i o n . Be was a t h i s " p e r s u a s i v e b e s t " a n d

was the dominat ing presence . H e i n s i s t e 6 t h a t t h e r e s o l u t l o n b e

passed unanlmously and wlthout amendment. He t o l d t h e m e e t i n g t h a t

h e h a d d l s c u s s e d t h e r e s o l u t l o n w l t h t h e F e d e r a l P r e s i d e n t who was

i n agreement with lt a n d w i t h t h e a c t i o n t o be t a k e n . I n f a c t , t h e

F e d e r a l P r e s i d e n t h a d no knowledge o f t he r e so lu t lon o r of t h e

. /22. . . .

.- - 22 - i

p roposed ac t ion . NO evidence was g iven as t o any research under taken

a n d d i r e c t e d t o the lega l ex is tence of the Geelong Sub-Branch , ye t

t h e m a t t e r s c o n t a l n e d i n p a r a g r a p h 1 of t h e r e s o l u t l o n c o u l d a n d d l d

a f f e c t t h e w h o l e o f t h e r e s o l u t i o n , I n a c c o r d a n c e w i t h p a s t p r a c t i c e ,

the Geelong a u d i t e d b a l a n c e Sub-Branch, on 3rd March, 1 9 7 7 , had fo rwarded to Ja r r ad the

s h e e t	a s	a t 31st	Tecember,	1 9 7 6 ,	t o g e t h e r w i t h	a	cheque	I
I

i n t h e sum of $ 2 9 , 1 6 6 . 6 1 , b e i n g t h e amount p r o p e r l y p a y a b l e p u r s u a n t t o I

F e d e r a l R u l e 4 5 ( d ) . I n a d d i t l o n t o t h e $200 r e t a i n e d , c e r t a i n GtheJ.

sums were r e t a i n e d b e i n g t h e s p e c i a l f u n d s r e f e r r e d t o above. A t t h e

mee t ing , i n answer t o a q u e s t i o n of w h e t h e r t h a t sum of $ 2 9 , 1 6 6 . 6 1 had ,

been pa id , J a r r ad sa id tha t t he $32 ,509 .75 referred t o i n p a r a g r a p h 2 of

t he r e so lu t i c jn v7as comple te ly separa te and had noth ing t o d o w i t h t h e

$29 ,166 .61 rece ived by h im. With the poss lb le except ion of the las t

two q u a r t e r s o f t h e y e a r 1 9 7 6 , t h e r e was no requi rement tha t the Geelong

Sub-Branch should pay sustentat ion fees t o J a r r a d . I n fact a l l f u n d s

p rope r ly payab le by the Geelong Sub-Branch had in fac t been pa id on

3rd March, 1 9 7 7 and the amount so p a i d was g r e a t l y i n excess of t h e

amount o f a n y s u s t e n t a t i o n fee for t h e l a s t two q u a r t e r s of t h e y e a r

1 9 7 6 . Allen de te rmined by the Federa l Counci l had not been informed of t h e rate o f t h e s u s t e n t a t i o n f e e

a t I t s m e e t i n g i n March 1 9 7 7 , Federal

Ru le 31 (c ) . It was o n l y d u r i n g t h e c o u r s e o f t h e h e a r i n g of t h e m a t t e r

Johns v . A l l en , sup ra , t ha t he d i scove red the r a t e had no t been changed

whereupon he forvarded, on 26th A p r l l , 1 9 7 7 , t h e s u s t e n t a t i o n fee f o r

the quar te r r e s o l u t i o n . endlng 30 th March , 1 9 7 7 , paragraphs 2 (b) and (c ) of t h e

The r e m a i n i n g p a r t s o f t h e r e s o l u t i o n m u s t be seen i n t h e

l i g h t o f t h e f a l s i t y o f t h e f a c t s i r n p l l e d b e h i n d t h e first two

pa rag records of raphs the Geelong Sub-Branch had not . The re had been no p r io r sugges t ion tha t t he books and

been kept properly or had

not been audi ted p roper ly . Paragraphs 3 , 5 , 6 and 7 o f t h e r e s o l u t i o n

are d i f f l c u l t t o ~ u s t i f y e x c e p t as being a consequence of the

e s t a b l i s h m e n t o f t h e m a t t e r s r e f e r r e d t o i n paragraphs 1 and 2.

Paragraph 4 is a n a t t e m p t t o res t r ic t t h e o f f i c e r s o f t h e G e e l o n g Sub-

Branch from seeking legal a d v i c e o r t a k i n g l e g a l p r o c e e d i n g s i n t h e

course of the conduc t o f litigation i n which a member of t h e F e d e r a t i o n , .

n o t b e i n g a member o f t h e V i c t o r l a n Branch, was s e e k i n g o r d e r s a g a l n s t

them under s.141. of t h e A c t . Although It is n o t f o r t h i s C o u r t t o

expres s a v iew on whether the S ta te Execut ive should or should not

exercise i ts powers under the ru les 0; t h e F e d e r a t l o n , t h e C o u r t should

and does done bona f ide express an opin lcn on wheth& the exe rc l se o f t hose powers 1s

o r	n o t .
./ 23.. . ,

- 23 -

On t h e f a c t s o f t h i s case, we f m f i t h a t t h e r e s o l u t l o n p a s s e d

at t h c f i d e f o r t h e p u r p o s e s State Executive mccEing on 13th' April , 1377 was n o t made bona

of the powers confe r r ed upon t h e S t a t e E x e c u t l v e

bl7 t h e r u l e s o f t h e F e d e r a t l o n . The na tu re o f a bona f l d e e x e r c l s e o f '

powers i s d i s c u s s e d l a t e r .

On t h e s e facts, It IS necessa ry t o cons ide r whe the r t he o rde r

sought under s.141 of t h e A c t r e l y i n g upon t h e i n v a l i d i t y of Fede ra l

Ru le 17 (n ) shou ld be made. It 1s open to a p a r t y i n p r o c e e d i n g s u n d e r

s.141 of t h e A c t , o r f o r t h a t m a t t e r I n a n y p r o c e e d m g s i n a n y C o u r t

where the matter may b e a n i s s u e , t o c lam t h a t a r u l e o f a n o r g a n i s -

a t i o n c o n t r a v e n e s t h e p r o v l s l o n s o f s . 1 4 0 ( 1 ) of t h e A c t and I f upheld

a p a r t y t o t h o s e p r o c e e d m g s c a n n o t r e l y upon f a c t s d e p e n d a n t upon t h e

v a l i d i t y of t h a t r u l e . I n l e g a l p r o c e e d m g s o f t h l s k i n d , t h e

l n v a l i d l t y a r l s i n g f r o m a non-compliance with the requirements of

s . 1 4 0 ( 1 ) o f t h e Act r e s u l t s from t h e o p e r a t l o n of t h a t s u b - s e c t i o n

i tself a n d t h e I n v a l i d l t y d o e s n o t d e p e n d upon an o rde r havmg been

made i n p r o c e e d i n g s m s t l t u t e d u n d e r t h e p r o v i s i o n s o f s.140 o f t h e A c t .

Any o r d e r made i n p r o c e e d i n g s o t h e r t h a n i n p r o c e e d i n g s i n s t i t u t e d

under s . 1 4 0 of t h e A c t i s b i n d i n g u p o n t h e p a r t l e s t o t h o s e p r o c e e d i n g s

on ly s i m i l a r and ope ra t e s on p reced ing f ac t s . An o r d e r so made h a s no e f f e c t

t o a n o r d e r made i n p r o c e e d m g s l n s t i t u t e d u n d e r s . 1 4 0 o f t h e

A c t w h i c h o r d e r o p e r a t e s a s from t h e date o f i t s maklng and t h e r e a f t e r

a f f e c t s a n d i s b ind lng upon a l l p e r s o n s ; g e n e r a l l y see Shearer ' s Case ,

supra, per Ki t to J., w i t h whose McTiernan &J. a t pp. 372-3, Pullagar J. a t pp. 378-9,

r easons Dixon C . J . agreed, a t pp. 380-381 and

pp. 384-385, Menzies J. v n t h whose r easons Tay lo r J. agreed, a t p. 387-8 .

and Windeyer J. a t p. 389.

I n t h e p r o c e e d i n g s c u r r e n t l y b e f o r e t h e C o u r t , f o r t h e r e a s o n s

earlier expressed , we f i n d t h a t o n t h e 1 9 t h A p r i l , 1 9 7 7 Federal Rule

1 7 (n) contravened s . 1 4 0 (1) (c ) o f t h e A c t and accord lngly was void and

I

o f n o e f f e c t . It f o l l o w s t h a t o n 1 9 t h A p r i l , 1 9 7 7 Townsend was n o t a

member o f t h e State Execut lve and should not have been present a t t h e

meet ing of the S ta te Execut lve , should not have moved t h e r e s o l u t i o n

and shou ld no t have p l ayed the domina t ing pa r t t ha t he d id .

I n t h e s e c i r c u m s t a n c e s , we a p p l y t h e p r l n c i p l e s s ta ted i n

Lynch v. Hodges (1963) 4 P.L.R. 3 4 8 . I n t h a t case, a t a meetmg of

a committee o f management of an organisa t lon , Lynch , who subsequent ly

./24. , . t

was found a motion vhlch to have been lnva l id ly elected t o LhaL committee, moved

vas carried n i n e v o t e s t o f i v e , Lynch had a per sona l

i n t e r e s t i n t h e s u b j e c t matter of t h e r e s o l u t i o n a s passed and

p a r t l c i p a t e d 111 t h e d c l i b e r a t i o n s c o n c e r n i n g t h e m o t l o n . The

Commonwealth I n d u s t r i a l C o u r t h e l d t h a t t h e s e facts v i t i a t e d t h e

r e s o l u t i o n a n d r e f u s e d t o make o r d e r s d i r e c t i n g c o m p l i a n c e w i t h

t h e r e s o l u t i o n . I n a ~ o l n t ~ u d g m e n t , S p i c e r C . J . and Joske J, s a i d

a t p.350 :-

l' The v i t a l m o t i o n I n t h l s case was moved by Lynch

h imse l f . It 1s clear t h a t he had no r i g h t t o move it.

In those c i r cums tances it seems t o u s t h e c h a l r m a n o f

the meet ing should have re fused t o accept Lynch 's motlon

and doubt less would have done so had t h e C o u r t ' s d e c i s i o n

been pronounced a t t h a t tlme. Had t h i s course been

fol lowed It 1 s i m p o s s i b l e t o s a y t h a t t h e m o t i o n w o u l d

have been moved by anyone else. This c i rcumstance 1s we

t h i n k s u f f i c l e n t t o v i t l t a t e t h e m o t l o n a n d w e d o n o t

t h l n k it h a s a n y v a l l d l t y .

Fur thermore , the motion was one whlch Lynch had a

p e r s o n a l i n r e r e s t t o promote. H i s p a r t l c l p a t l o n i n t h e

d e l i b e r a t l o n s a n d h i s v o t e in i t s f a v o u r a r e a d d i t i o n a l

r e a s o n s f o r d i s c a r d i n g i t . T r u e h i s v o t e i n t h e e v e n t

was n o t v i t a l t o t h e p a s s a g e o f t h e r e s o l u t l o n , b u t it

i s imposs lb le t o s a y t h a t h l s p r o m o t l o n a n d s u p p o r t o f

t h e r e s o l u t i o n h a d no i n f l u e n c e upon o t h e r s who voted

w i t h hlm. "

There 1s n o t h i n g s a l d e i t h e r I n S t e u a r t v . O l i v e r ( N o . 2 ) ( 1 9 7 1 )

1 8 P.L.R. 83 o r I n B a r t e r v. Maher (197%) 2 1 F.L.R. 10 whlch i s

c o n t r a r y t o t h i s view.

I n t h e p r e s e n t case, t h e r e s o l u t i o n was carr led unanlmously.

Neve r the l e s s , on t h e facts found , i nc lud ing the p re sence o f Townsend

a t t h e m e e t i n g , h l s moving of the mot ion , t he domlna t ing pa r t he

p l a y e d I n t h e d e l i b e r a t l o n s o n t h e m o t l o n a n d t h e f a l s e s t a t e m e n t

made by him c o n c e r n i n g h i s c o n v e r s a t i o n s w l t h Thompson, we are

satisfied t h a t Townsend ' s p re sence and pa r t i c lpa t lon a t t he mee t lng

o f t h e S ta te E x e c u t i v e v l t l a t e d t h e w h o l e o f Ehe r e s o l u t l o n .

Accord ingly , o rders pursuant t o s.141 o f t h e A c t should be made I n

r e l a t i o n t o p a r a g r a p h s 3, 4 , 5, 6 and 7 of t h e r e s o l u t i o n .

./25.. .

I

I

- $

- - 25 -

L . -

I

We t u r n now to a c o n s l d e r a t l o n of w h e t h e r t h e r e s o l u t i o n

of t h e S t a t e E::t?cutlve umde on 1 9 t h A p r l l , 1 9 7 7 vas made bona f l d e

for the pu rposes of the powers confer red upon the State Execut ive

by t h e r u l e s o f t h e F e d e r a t i o n . T h e r e is no doub t t ha t unde r the

r u l e s of t h e F e d e r a t i o n , t h e State Executlve has wide powers over

t h e G e e l o n g S u b - S r a n c h , o r r a t h e r , t o b e e x a c t , o v e r t h a t g r o u p of

members of t h e F e d e r a t i o n who, be ing members o f t he Vic to r l an Branch ,

are a t t a c h e d t o the Geelong Sub-Branch. All monies received by the

Geelong Sub-Branch must ne banked i n a n a c c o u n t I n t h e name o f t h e

Victor lan Branch and form part of t he Bracch funds to be managed and

c o n t r o l l e d i n a c c o r d a n c e w i t h t h e r u l e s o f t h e V l c t o r i a n B r a n c h ,

Federa l Rule 32 . The Geelong Sub-Branch makes no d l r e c t payment m t o

the Fede ra l Fund , lt is the Vlc tor lan Branch whlch i s d i r e c t e d t o make

those payments t h a t t h e f u n d s o f t h e G e e l o n g S u b - B r a n c h s h a l l b e t h e , Federal Rule 31. Vlctor lan Branch Rule 1 9 common p rov ldes

p r o p e r t y

of the Vic tor ian Branch sha l l be governed Vlc tor lan Branch . Vic tor lan Branch Rule 4 p r o v i d e s t h a t t h e

by t h e S ta te E x e c u t i v e b u t t h a t

whcre poss lb l e dec i s ions of t h e S t a t e E x e c u t l v e s h a l l be r e f e r r e d t o

the branch meet ing for endorsement o r o the r ' v i se . Fede ra l Ru le 45 1s

t o be c o n s l d e r e d I n r h i s c o n t e x t . C o n s l s t e n t w i t h t h e provisions of

t h e r u l e s of t h e F e d e r a t i o n , t h e members of a branch who are a t t a c h e d

t o t h e s u b - b r a n c h " s h a l l a t a l l times be unde r the con t ro l of and

tuke in s t ruc t ions V i c t o r l a n B r a n c h , i n l t l a l l y f rom the b ranch" , Fede ra l R u l e 45 ( a ) . I n t h e

i t 1 s t h e S ta te Executive which has t h e

power t o c o n t r o l a n d g i v e i n s t r u c t l o n s t o the Geelong Sub-Branch.

The books and r ema in the p rope r ty o f t he Vic to r i an Branch , Fede ra l Ru le 45 (b ) . records of the Geelong Sub-Branch are s u p p l i e d by and

S u b j e c t t o r e t a i n i n g s p e c i f i e d a m o u n t s , t h e G e e l o n g Sub-Branch 1s

r e q u l r e d e a c h h a l f y e a r t o f o r w a r d t o the Vlc to r i an Branch a l l funds

t o g e t h e r w l t h a u d i t e d r e t u r n s , F e d e r a l R u l e 4 5 ( d ) a n d ( e ) . These

p r o v i s i o n s are cons i s t en t w l th those funds be ing Vic to r i an Branch .-

funds . Fede E x e c u t i v e r e l a t l n g ra l Ru le 45 ( l ) con fe r s spec i f l c powers on t he S t a t e

t o the Geelong Sub-Branch.

I n o u r o p l n i o n , t h e State Execut lve i s r e q u i r e d by la11 t o

exerclse t h e povers c o n f e r r e d npon lt b o n a f i d e f o r t h e p u r p o s e s f o r

vh lch they are conEerred, namely the government of the Vlctor ian

Branch, Vlctorlan Branch Rule 4 . I n o u r o p i n l o n , members o f t h e

committee of management of a n o r g a n l s a t i o n , a branch of an organis-

a t l o n o r a sub-branch of a brar .ch of an organisa t ion owe a f l d u c l a r y

d u t y t o members Of t i e o r g a n i s a t l o n , t o members w i t h i n t h e b r a n c h

. /26 . . . I

- %G -

and to members wi th in the sub-branch a s t h e c a s e may be. Members

of committees i nco rpora t ed bod les be ing compan ies inco rpora t ed unde r l eg i s l a t ion of manzgement a r e t o be compared ~71 th d i r ec to r s o f

such as have developed pr inc ip les of t h e Companies Acts o f t h e States o f A u s t r a l i a . The Cour ts

l a w of g e n e r a l a p p l i c a t i o n r e g u l a t m g

t h e manner 111 w h ~ c l ? d i r e c t o r s OK companles are r e q u i r e d t o exercise

powers con fe r r ed p r i n c i p l e s o f l a w s h o u l d a p p l y t o upon t hem. Sub~ec t t o necessa regulate ry adap t lons , slmllar

t h e exercise of powers

confe r r ed upon members of a committee of management o f ar. o r g a n l s a t l o n

or of a branch of	a n o r g a n i s a t l o n	or of	a sub--branch of	a branch of
a n o r g a n l s a t i o n .

The re a re many similarlcles between organisat ions and legal

persons incorporated under the Companies A c t s . Each is a creature

o f S t a t u t e . T h e l r e s s e n t i a l s i m i l a r i t y i s t h a t e a c h h a s a l e g a l

p e r s o n a l l t y s e p a r a t e a n d d i s t i n c t from Its members. Each has an

independen t ex i s t ence a s a l e g a l p e r s o n . Each 1s glven a p e r s o n a l i t y

which i s d i s t i n c t f r o m t h a t of a l l or any of ~ t s members and which

con t inues t o subs ls t unchanged notwi ths tandlng the changes which are

bcund t o occur from time t o tlme I n i t s membershlp. Each has

p e r p e t u a l s u c c e s s i o n . Each ma in ta ins I ts i d e n t i t y a n d Its p e r s o n a l l t y

no twi ths t and lng changes in Its membership, which may occur from day

to day . The p rope r ty o f each does no t be long to i t s members from

time t o tlme. Compare Wllllams v. Hursey ( 1 9 5 9 ) 1 0 3 C.L.R. 30 p c r

P u l l a g a r J. a t pp.52 t o 54 . Each must ac t a t t h e d l r e c t i o n of

l n d i v l d u a l s who manage its a c t l v i t i e s . The powers of t h e s e l n d i v l d u a l s

depend upon t h e r u l e s w h i c h r e g u l a t e t h e a f fa i r s o f t h e l n c o r p o r a r e d

body. The r u l e s may be l n c l u d e d I n t h e Merr,orandum and Artlcles of

Associat lon of companies incorporated under the Companies Acts o r l n

t h e R u l e s of Organ l sa t lons made p u r s u a n t t o t h e Act. The rules lnc lude

n o t o n l y t h e o b l e c t s t o be pursued by t h e l n c o r p o r a t e d body b u t a l s o

the powers c o n t a i n p r o v l s i o n s r e g u l a t l n g t h e a f f a l r s by w h i c h t h o s e o b j e c t s a r e t o be pursued. The r u l e s a l s o

crosses" but does not set out a visual direct ion such &S

the figure "i" ln a square,

In our opjlnion, it i s understandable t h a t scme

X-otcrs haolng s t a r t e d t o c a s t t h e i r vokss a t tine top of

t h e b a l l o t p z p r by the use of a cross t o ind ica te the i r

pre.fer=nce m q h t easily have continued uslng a cross as the l r

- 2 1 -

method of voting for the off ices set out i n the f lna l two

blocks a t t h e bottom cf the ballot papsr. Under such circum-

stances the placing of a cross against the name of a

candidate for SEC?: ofzlce by a par t icular voter would

convey the same meaning as a cross which tha t vo ter had

used to ind ica te h is preference Cor candidate(s) i n the first

seven blocks.

Irr Eehan -v- khe Federation ( B . Fo. 139 of 1976 - -

19 November 1976 - 1.L.R. Vo1.19 No-l Para.1 of 12 January 1977)

Smithers J , considered this question. The elect lon i n t h a t

case 1,ms €or the f l l l i ny of the offlces of Assistant Secretary-

Organiser and Organiser of the Victorian ?,ranch of t'ne Federct;on.

The "€Iov; to vo te" d l rec t io l l s for each o f f l ce set out on t h a t

ballot paper read :

I, (One to be Elected.)

VOTIKG OPTIONAL PKEFER%MTIAL

(HOW TO VOTE)

Place the figurc; 1 ir? t h e square opposlce the name

of the candidate of your f i r s t choice. You may place

t h e f i g w e 2 i n the square opposite the mine of the

candidate of your next choice D Fallure t o place

f igure 2 s h a l l n o t d i squa l i fy thrs ba l lo t papsr .

There were two candidates only f o r each office.

Deallng wlth the question of the va l id i ty of a

vote where a cross had been placed against the name of one of

the candldates 1 ;nds t the other square vas left :olanl; Srnlthers J.

s t a t ed :-

It i s my opxuon that the ballot papers bsaring

a cross agalnst the name of a canlldatc but not bsarlng

any numeral against the name of any candiGate were properly

t reated a s r'ormal votes ......~_

I n foxring the Gpr?ion that i n uslng a cross a

voter did clearly show his preference I have had	reqard
to the followlna considerstions.

The items i n any L l s t of slynlficance of a C ~ G S S or crosscs agalnst

rtems can o a 2 ~ '-G 0rlc;erst-ood by

rrfr-lrer-ice to the p r p o w I n tjkl? m.lrd of the person v110

so pl-aced the crosses. If the purr,use is not knol.1 the

mean3.ng G€ ~ - ~ s s e ~ 1 s not knoTm, bu-c I f t he purpose i s

kns5.n the crosses s p ~ & vnthout equlvocatlon. L11 my

-..-L . . . _ _ - )

-. - -

- 22 -

opinion the puipose of the voters who usad crosses

is linown. That purpose was to indicate a candidate

chosen by the voter to 5111 the relevant office. It

is a fa i r in ference from the voter ' s par t ic ipz t ion I n

the election that he understood he vas 1 7 0 . c ~ 1 - 1 9 t o select

a person or persons to f i l l some o f f i ce o r o f f ' rces.

Casting a voke i s In essence an act of a posi t lve

character rather than negative; one votes for a

person to be elected. Excluslon of the other or others

i s merely consequential ........

Those v~ho placed crosses no doubt included

persons who could not or did not read the instructions

c a r e f u l l y o r a t a l l .

Those who could not read a t a l l wouic? be most

l ike ly to unders tand tha t the exerc ise was a p o r i t l r e

one t o e l e c t a person t o o f i i c e r a t h e r Ynan t h e reverse.

Placing of a cross vould be refei-abie to that under-

standing and :hns a clear expression of intention. Tine

same may be said of those vho could, b u t did not, rea3

the bal lot paper and of those who read the bal lot Gaper

and understood ~ t s contents only in part . Those who

read the instructions and understood chem fu l ly but

lgnored the injunction to use a f lgure 1 and used a

cross instead are not the less t o be understood as

designating the candldate t o be d e c t e d .

I n my oplnion, therefore, I n a l l these cases it

may be a flgure agalnst sa id , alkhougn there has hcen a f a i lu re t o place

each candidate 's nzme or agalnst any

candidate 's name, the preference of rshe vocer has beet1

c lear ly 8hoY.m - I ~ - . .

I I do not overlook that Branch Rules 7 ( a ) and 7 ( 5 )

zssune that votmg w.111 be by the use of flgurgs but I

do not regard them a s mar,datory i n t h i s respec'c. Their

doinnant purpose 1s t o use an opt lnnal prefzrent ia l system

and to preserve from informallty votes so f a r ss preferences

may be shown thereon. For Lhls l a t t e r purpose where one

candldate only 1s t o be elected a cross is as useful as

the f igure 1.

do a s t h e method of cast ing a vote 111 r'avour of a no t t hmk tha t t he f ac t t11a.t I n recent

I

union elections crosses had been o l f i c i a l l y chosen

candidate should be used to ass i s t In the so lu t lor !

of the problem set by the use of crosses. Nor d.0

I thiak p r p o s e o f Conmonr.realth e lect ions in that the use of c rosses s imi la r ly for the

times past

is rclevant. I thmk the o ~ l y sound approach is t o

tnlce the slnple view t h a t It 1 s proper to i n f e r t h a t

a person who votes in an eiect ion 'CO choose a person

foL a n of.Clcc and whg does some act t o deslqrrate a

par t icular candldste 1s _expressing &n Intention that

thE candidate designated	is the candxlate he chooses
t o be elected.

!

I

- 23 -

hr Shaw submitted that the decis ion in Eehan's

Case should be distlngulshed for the reason that the

"how to vote ' ' d l rect lons i n that case did not include

the vords "DO VOT USE CROSSES" as was the case In the

fur ther gemral d l rec t ions	PTpearing	on	the subject ballot
paper.

B u t the question for determlnation is whether

the voter i n placing a cross against the name 0; one of

the two candidates for the off lce of Branch General Secretary-

Treasurer and leaving the square alongside the name of the

other candidate blankhas thereby indicated h i s preference

for the candidate agalnst .Ihose name he placed the cross

despi te the direct ion not to use crosses. I n other wOrdS

has that voter expressed or indlcated his preference In a

way llhich leaves it indisputable as to vhat his preferncce

va S

Ve adopt the reasons of Smlthers J. i n Behan's

Case se t ou t above. lie a re of the oplnioc that the ba l lo t

papers bearing a cross against the rrame of one of the two

candldates for the o f f i ce of Branch Secretary-Treasurer and

not b2arlng any mark agamst the name of the ottler candldacz

were pro2erly treated as fonnal votes.

Turning then to the question of the issuing by

the Electoral Officer of a nurnbzr of duplicate ballot papers.

I n sddition to the facts contained in the appllc--' CL103

fi led herein :elating to thls question further facts vcre agrzed

t o a.t the hearing and the Elec'corai Offlcer' S evidence l n c l n d d

referepces thereto. These facts included the number of members

who lodged applications for duplicate ballot papers, the

var ia t ion (if any) of the address of such member I n such appl ica t ion to tha t shown I n the msmbershlp books oE the

Branch, the nw.1her of original ballot papers returned unopened

and the namber of such upopened enTlelopes containing ballot

papers t4nch matched up wlth the names of members t o whom

dupllc3te b ~ ~ l l o t papers had been iss1.1ed!. C2tail.s of

. ./24..

- 24 -

such evldecce is nuI; s e L U U L as Le i s c l ea r t ha t i n f a c t 285

duplicate ?:allot papers were issmd and such a number of votes,

i f t he l s su ing of the dupllcace ballot papers was an l r r egu la r l ty

within the neanlng of S.lG5 of the A c t , may have affected the

r e su l t of t he e l ec t i cn fo r a l l o f f i ces o r pos l t i ons o the r

than those t o vhich Mr B u r t and Mr Slevin mre elected.

Tk1e ru le s of the organisation are s i l e n t a s t o the

issue of duplicate bal lot papers zn any elect ion. The

applicant contends that the returning offlcer is cornpslled

by the provlslons of Branch Rule 7 ( c ) to fomard to the

l a s t lcnown address appearmg ]I? the membershis hooks of

the branch of the un~.on the necessary envelopes and ba l lo t

papers f m a poscal bal lot and t h a t chilp ru l e prevented the

issuang by the returmmg officer of any bal lot papers tcr

any otlner address. Consequently, the applicant subxitted,

the i s s u i n g an i r regalar l ty within the of the duplicate meaning of 3.165 and thac such bal lot papsrs mounted to

irregularity c l ea r ly may nave affected 1'.11e result of tk-e

e l ec t l cn eo the of f lces and posi t ions referred to .

The dlfference between Branch Rule 7 ( c ) and

Feder21 R u l e 4 I n this regard should be noted. Federal

Rule 4 1 s the rule set t ing out the method of takmg a balloc

in r e s p x t of the of f ices of Branch Delegates to Federal

Councll (Brach R a l e 7A(3)). Federal Rule 4 provldes i n

s u b r u l e (c ) ( l v ) tha t the e lec t ion shzl l be by means of

a secre t pos ta l ba l lo t and tiien makes provls~.on i n sub-rule

( c ) ( v ) t ? r d t "as soon as p rac t i cab le a f t e r the date fixed

for the openlng of the ballot each mcmb?r . . . ~ . . . . . . " sha l l

be lssu,sd with a ballot paper. "

r .

!

- 35 -

%as notifxed in the A-astralian Government Gazette cn 30 Auugust

1 9 7 6 . Such r u l e included a new Part V AA t o the Regulations

made under the Act. The new Pare contains regulations

nLjmber Reg.146 Z u l t o Reg.146 AT dealing with secrec postal

ha1l.o ts. Although It was not argced khat the prorrlslons o€

new Part V Officer had reGard -AA applied t o the subject electior,s , the Electoral

tc some cf che prcvlslons contained thereln

and, as a resulr , , varied his normal prLctlce wrth respect tc

3-ssulng duplicate k13-ot papers.

Regulations la6 AK reads :-

"Duplicate ballet papers and return envelopes.

(l.) l%ere, on zppllcatlon before che time of

the close of the balior l nan el-ec'clon, the

Retu;nlng 0ffJ.ce.r is sac i s f l ed tha t a ba l lo t

paper or return envelope issued t o a person

vhosc' nane is on the roil of voters, has not

beer? receiTiec5 or has bcen lost , destroyed o r

spilt, he s i ~ l l issue to that p?rson a duplicate

kal lot paper ,	or	return emielops, as the case	may
b? m

( 2 ) An application undzr sub-reGulation (1)

by a person Lcoc a dupllcste b a l l o t paper o r

1-eturn enveLope, f o r an e lec t ion sha l l be in

wrlt lng set t ing out the grounds on whlch t h s

application is made 3 r d declaring tha t t ne

person has not voted 1.2 the elect lon and s h a l l ,

i f p r a c t l c a b l e , be accompanied by any evidence

t h a t i s available of thak non-recelpt, loss ,

tlon destjruc ~r hanxge. 11

The Electoral Off lcei , pr lor t o the conung m t o

force of Reg. l46 AI: LII August 1976, had adopted a practlce

requlrlng a Statutory Declaraclon f r o m any applicant see5 ng

B duplicate lmllct ppx- ln those e l e c h o n s conducted u n d e r

the A c t where he had acted as the retvr-mng o f f i ce r

- 2 6 -

i n T,d.\lch the Electoral Officer l r l t;% part icular case fou!ld

himself could not have been so sa t l s f l ed . The Cour: therefore

accepts his evldence that i n a l l c a s e s where i n fac t he lssued

a d~$lic:ate ballot paper he was sa t ] s f i ed t ha t the apFllcant

fo r such dc2llcate ballot paper	had not received	an e a r l l e r
ballot paper.

Durlng his evidence-m-chief the Electoral O f f l c e r

$\/,as askd. the reason vhy he issued such duplicate ba!.lot

papzrs. I-lis reply vac "I considered -chat S.170A e n t l t l e d me

t o accepr an application fo r a dupllcace ballot paper even

though the r u l e s of t h e Union did n d provide for it."

Again i n cross-exanination &en asked 011 :hac

basis or xrhy dl2 he issue dupkcatc. ballot papers	ne
andwered :

"I belleved rsyselir tha t a member chat recelves -

thz'c is ent l t leci to receJ.ve a ba l lo t paper -chat

has not received It an6 then reports i t to the

off l rcr conduct ing the elect ion that he has not

received I t , lf sufflcient evidence 1s glven to

the officer conriuctmg the ballot fr3m the p= ,rson

who says he has not received ~ t , ther, I thlnlc

the person i s e n t l t l e d t o r c c e l w che ballet paper:

an3 of course, lt 1s. not h i s f a u l t he dld not

receive 113 through the post.

The rqht of a person t o c a s t a vote in any

franchlse I n \-.hi& he is e n t i t l e d t o voce should not be

Lost t o him unless the prohlblt lon agamst voting is provided

for In cleac an2 precise terms 111 the rules or reynlations

governing k h ? t franchlse. A s Isaacs J, s ta ted i n

I<ea.l -v- ~<er '~ i 27 C.L.R. 449 a t page 459 -

- Z f -

votlng. The c-sser l t la l point to hea r in mind i n

this contleccicn 1 s t h a t khe ballot ~ t s e l f is only

a means to sn end, azld noc ths end I t s d f . It

i s a method adGpted 3.n order to guczd the franchise

ao,alnst external influences, and the end amed at

i s tne irree election of a rep-cEscnta.ti\e by a

It

majorlty of those en t l t l ed t3 vote.

Again a t page 45s ills I-Ionour s ta ted -

"Acting on the sams pr inciples a s 511th reg3rd

t o t h s E l r s t , and I n fa-rour of c~nservlr?g the

frailchise, so f a r a s Lhe law a l lovs me, t u every

e1ect.x who intends to vote , I thmk I should,

a s bezore, resolve a Gooubt a s t o form In favour

of tke suhstant la l rlghht to vote.

This principle should in our oplnlon apply not

only to fonn b u t also t o procedural steps In the conducting

of a bal lot unless there IS a clear prohibi t ion against such

procedural steps in the rules or regulations governing t i e

par t lck lar election I

S.l7OA(l) of the Act reads :-

"A person conductlng an electlon, or taking a

step l n o r In connexlon wlth 311 electian. for

%n of f l cc 13, or :n a branch o f , an organiza Lion

a - . .. -.. - -. .. . .under the las t preceding sect ion,

may, not:.llthstandlng anyth1r.g contalned 111 the

r u l e s of the organlzatlon or branch, take such

actlon acd glve such dlrect lvns as he conslders

necessary ~n order to ensure that no Irregularities

occur i n or i n connnxion l.:ith	the e l e c n o 2 o r to
remedy any procefkral defects	I n those r u l e s \131cTl

appear to hlrn t o cx l s t .

l

In the j?edersted Irgnworkers Case a t page 283

the Couri; i n the ] o a t jucgment oE Dixon, I4c'i'iernan, W~ll iams,

Webb, Fullagar, Kitro JJ. s a d -

"The poiEt vas t a l~en that under sub-s. ( G ) ~t 1s

possible for t he o f f l ce r condvc'clng t h e e lect ion

to igcore, a t a l l e v e n t s t o srJme exten t , the

provisions o€ the r u l e s of t k organization o r

branch. Svb-sectlon ( 6 ) does not authorrze him

to ignore the substant ive rules which govei-n the

const lzut lsn of the ofElces a d t'ne requiremefit

that the occupants should be elected. It is carqfully guarde6 and doubtless only authorizes

dcpai-tures Erom par t icu lar r:?lss for the avoicance

or' l r r e g u l a r l t l e s i n the defrr,ed sense and i o r

remed.ying \h=t it describes h procedural defects.

That 1s to say, the sub-sect icn i s d l rec ted to overconlnung subsldiary irn,Dstdlm?nts t o the propzr executior. 02 the main provis?.ons of the rules,

sanctioned under s s . 7 0 and 71. which gcvern the

elect lon of offlce-bearers ,	Such a pro%ision 1.5
Ealrly wj t lnn the Incidental	p ~ i e r .

The applicant colltended that the par ts of Zrapch

Rule 7 which are apphcable CO tbe b l l o t were main prov;sions and tha t i z would he wrong to apFroach Branch RTle 7 ( c ) 2s if

it were itsel€ a suhsidzary provislon. It was fur ther . - u h m t c ~ r i

t h a t R u l e 7 (c ) b a n g a maln prom sion Yne yvestinr. for the Court vas \,:hether there was a su'ssldlaz-y inpedinent to the

proper execution of thak i-vie. Such cpestlon, it \:'G sulmlttcd,

shoulcl bs ans\rered in the nega t ive as 'chc suh-rule could

pluin3.y be complled vi th . Consequeatllr k h e Electoral O f Cicer

in the present case \'as not authorxsed under S.17OA( l) tc. I S S I I ~

duphcdte l>al lot pspc-rs.

I

- 29 -

I "Counsel, however, obtamed leave at the hearing to

amend the grounds of his order ni-s i so as to enable

him 'CO contend t h a t , a s a maczer of construction

slmply and a p a r t a l t o y t h e r frcm any cons t i tu t loaa l

question, S m 96X( 6) dld not authorize the giving of

the dxrections actually given. It was contended, i n

ecfect, that of direct lons m i y In order the sub-section authorized the givlnq

to o:iercome some defect-

in the ru l e s of he organlzation or to prevent some

i r l e g u l a r i t y winch might be thought l ikely to ar lse

from a str lct observance of the ru1.e~. In support.

of tins argument reference vas made to 1.hat -wzs salc l

in tk ~udgment of Ehe Court i n t h e Iro~wor3:ers '

C a s e . The Court there said :- "The p l n t rras taken

t h a t under sLib-S. ( 6 ) 3.t i s posslble for the o f f l ce r

conducting the e lec t ion to ignore , a t a l l events t u

some Extent, the provlslons of the rules of the

organization o r braach. Sub-sect~on(6) does xmt authoilzc

him t o ignore the substantive rules whlch govern the

coast l tut ion of the of f i ces and khe reqLGrement t h a t

the occupants should be elected. I t is careEuuliy guar?ed,

and doubtless only authorizes depa3zures from particula-r

r u l e s f o r sense and for remedying what lr. descrlbes as procedcral t h e avoldance of l r r e g u l a r l t i e s i n t h e d e f l n c d

defects. That i s to say , the snb-sectlon is directed

t o overcomlng subsidiary impedlmsnts to the proper

orecuklon of :he maln provlsions of t h e rules, ssnctloncd

undzr ss. 70 and 71 , which govern che electloil of offTce-

bearers". The argument. i n our opinion, unduly limits

the operation of sub-s. ( 6 ) , and misunderstands tlie

passege quoted. The t rue e f fec t of the sub-section 1s

to anthorise the person conductjiq the election to

give all such directlons as he considers necessary

i n order to ensure tha t no i r regvlar l t ies occur , g

( I n Leport prirLted i n i t a l l c t y p e ) Lo do t h i s n o t v ~ t n s t m d ~ : : ~

anything contauled ln the r u l e s o i the organizacion.

The v0rd.s "not5-ithstandlng anythiilg contamed m the

ru les" have an extending, not a l iml t lng , e f fec t .

The f a c t t h a t t h e vords "nocvlthhstanding anything

con'calned in :he zules of the organisat:.on o r branch" appear

I n a dlffexm1% pos i t? on i n the then S. 96H( 6 ) of the A c t t o

t h a k i n the present Sa170A(1) does no-c, in our opinion,

afZcct the construction placed upan timsz !.lords by the 1l~gl.l

Court i n th6 l.ater case lreferied to.

- 30 -

be void, 'ne would have to s a t i s f y the Court that the

provlslons of Rule ?(c) werp mandatory and/or tha t there

was a n xnp l i ed pzehiblt ion 3.11 the rules of tbe organlsa" Lion

against the such a concl.us~on wovld be contrary to che general prlnclplcs referred to . issuing of duplicate ballot papers. To reach

Consequently i r e a re of the opmion that no

i r r ego la r l ty xfnich ma.y	have affecced	the resul t of	che
election hes been shovn.