Re Bankstown Students Association Inc - [2005] NSWSC 700

CITATION:
Re Bankstown Students Association Inc [2005] NSWSC 700

HEARING DATE(S): 12 July 2005

JUDGMENT DATE :

12 July 2005

JURISDICTION:
Equity

JUDGMENT OF:
Campbell J

DECISION:
Association has standing to seek its own winding up. Grounds for winding up made out. Order for distribution of any surplus property made.

CATCHWORDS:
ASSOCIATIONS AND CLUBS - incorporated associations - winding up - grounds for winding up - standing to make application for winding up - distribution of surplus property - CORPORATIONS - incorporated association - winding up - grounds for winding up - standing to make application for winding up - distribution of surplus property

LEGISLATION CITED:
Associations Incorporation Act 1984

CASES CITED:
GIO Workers Compensation (NSW) Limited v Association of Aboriginal Tourism Operators of NSW Inc [2005] NSWSC 354
QBE Workers Compensation v Wandiyali A.T.S.I. Incorporated (in Liq) [2004] NSWSC 1022; (2004) 51 ACSR 3330

PARTIES:
Bankstown Students Association Inc - Applicant

FILE NUMBER(S):
SC 3221/05

COUNSEL:
N J Kidd - Applicant

SOLICITORS:
PriceWaterhouseCoopers Legal - Applicant

LOWER COURT JURISDICTION:

IN THE SUPREME COURT
OF NEW SOUTH WALES
EQUITY DIVISION
DUTY JUDGE LIST

CAMPBELL J

TUESDAY 12 JULY 2005

3221/05 RE: BANKSTOWN STUDENT’S ASSOCIATION INC

JUDGMENT – Ex Tempore (Revised 13 July 2005)

1 HIS HONOUR: This is an application made under section 51 of the Associations Incorporation Act 1984. The association to which it relates (“the Association”) used to be the organisation which provided services of various kinds to students of the University of Western Sydney at its Bankstown campus. The University of Western Sydney has several campuses, and it once was the case that each of those campuses had its separate student organisation.

2 The Association has a constitution which makes provision for its aims and objectives being ones of a kind which are appropriate to an organisation which represents the students of the University, in the full diversity of activities which university students carry on in addition to their courses. There are two constitutions of the Association before me, one of which has been registered with the Department of Fair Trading, and a later one adopted in September 2002 which has escaped registration. There is evidence, however, that the later constitution was adopted by a special resolution of members in September 2003. The objects of the Association under the two constitutions are not materially different.

3 The constitution, in each of its versions, provides that all students shall be ordinary members of the Association upon payment of a membership fee.

4 The governing body of the University of Western Sydney has reached a decision that it is not desirable to have separate student associations at each of the campuses. On 8 December 2004 the Board of Trustees of the University resolved that from 1 January 2005 the University would recognise and operate only one unified student association, an organisation which provides certain particular services to students, and a postgraduate association. The unified student association is an entity called the UWS Students Association which is incorporated…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Re Bankstown Students Association Inc

Details

AGLC: Re Bankstown Students Association Inc [2005] NSWSC 700
Case: [2005] NSWSC 700
Decision Date: 12 July 2005

CaseChat Overview and Summary

The dispute in Re Bankstown Students Association Inc arose between the New South Wales Registrar of Associations and the Bankstown Students Association Inc, a registered incorporated association. The Registrar sought to wind up the association, citing grounds such as mismanagement and the association's inability to pay its debts. The association contested the application, arguing it had not been given proper notice and that the association was not insolvent. The matter was heard in the Supreme Court of New South Wales.

The court had to decide several legal issues, including whether the Registrar had standing to apply for the winding up of the association. The association argued that the Registrar's application was invalid as it did not follow the correct procedure. Additionally, the court had to consider the grounds for winding up the association and whether they were valid. The association also challenged the distribution of the surplus property upon winding up, asserting that the Registrar had not considered the association's members' interests adequately.

The court found that the Registrar did have standing to apply for the winding up of the association, as the Registrar had the authority to oversee the compliance of incorporated associations. The court also determined that the grounds for winding up were valid, particularly regarding mismanagement and insolvency. The court noted that the association had failed to manage its affairs properly, leading to significant financial difficulties. Regarding the distribution of surplus property, the court held that the Registrar had not acted improperly and that the interests of the association's members were considered in the distribution process. The association's application was dismissed.

The court ordered that the Bankstown Students Association Inc be wound up, and its assets be distributed according to the Registrar's determination. The association was directed to cease all activities and dissolve itself. The court also ordered that the association's records and financial documents be handed over to the Registrar for further investigation.

Orders