Rana v Survery (No 2) [2012] NSWSC 905

Rana v Survery (No 2) [2012] NSWSC 905

No valid decision under the model rules was made at either the 21 November 2008 meeting or the 16 July 2010 meeting to admit the contested new members; and on the evidence, no valid resolution was made to admit the 22 or 39 persons contended for by the parties. Section 1322 of the Corporations Act does not cure the lack of a valid substantive decision under the Associations Incorporation Act 1984. The decision of the Executive Council of 26 April 2012 concerning School Board appointments was valid, as the earlier appointments were for a two-year term from May 2010 and the evidence did not support the plaintiffs' alternate timeline.

Parties
First Plaintiff: Wajahat Ali Khan Rana; Second Plaintiff: Mohammad Abdul Sami; Third Plaintiff: Rab Nawaz; Fourth Plaintiff: Abdul Rehman; First Defendant: Hafizur Rahman Khan Survery; Second Defendant: Masud Cheema; Third Defendant: Islamic Association Western Suburbs Sydney Inc; Fourth Defendant: Australian Islamic College of Sydney
Jurisdiction
Australia
Judgment Date
10 August 2012
Procedural Posture
Principal Judgment
Outcome
Plaintiffs' and defendants' claims for addition of new members at meetings of 21 November 2008 and 16 July 2010 are rejected. Plaintiffs' claim to invalidate the 26 April 2012 Executive Council resolution is rejected. Plaintiffs to pay 75% of defendants’ costs.
Legal Topics
Incorporated Associations, Model Rules Inclusion, Membership Nomination and Approval, Procedural Irregularity, Corporate Governance, Meetings of Incorporated Associations
Equity Associations and Clubs Law Incorporated Associations Model Rules Inclusion Membership Nomination and Approval Procedural Irregularity Corporate Governance Meetings of Incorporated Associations

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Parties

Wajahat Ali Khan Rana

First Plaintiff

Mohammad Abdul Sami

Second Plaintiff

Rab Nawaz

Third Plaintiff

Abdul Rehman

Fourth Plaintiff

Hafizur Rahman Khan Survery

First Defendant

Masud Cheema

Second Defendant

Islamic Association Western Suburbs Sydney Inc

Third Defendant

Australian Islamic College of Sydney

Fourth Defendant

Procedural Posture

Principal Judgment

Legal Issues

  1. 1 Whether 183 new members were lawfully admitted at the meeting of 21 November 2008 under the Association's Constitution and governing Act
  2. 2 Whether 22 or 39 individuals were validly admitted as members at the Executive Council meeting of 16 July 2010
  3. 3 Whether procedural irregularity provisions in s 1322 Corporations Act 2001 (Cth) validate actions under Associations Incorporation Act 1984

Ratio Decidendi

No valid decision under the model rules was made at either the 21 November 2008 meeting or the 16 July 2010 meeting to admit the contested new members; and on the evidence, no valid resolution was made to admit the 22 or 39 persons contended for by the parties. Section 1322 of the Corporations Act does not cure the lack of a valid substantive decision under the Associations Incorporation Act 1984. The decision of the Executive Council of 26 April 2012 concerning School Board appointments was valid, as the earlier appointments were for a two-year term from May 2010 and the evidence did not support the plaintiffs' alternate timeline.

Court Disposition

Plaintiffs' and defendants' claims for addition of new members at meetings of 21 November 2008 and 16 July 2010 are rejected. Plaintiffs' claim to invalidate the 26 April 2012 Executive Council resolution is rejected. Plaintiffs to pay 75% of defendants’ costs.

Orders

  • Plaintiffs' and defendants' claims for addition of new members at meetings of 21 November 2008 and 16 July 2010 rejected.
  • Plaintiffs' claim to invalidate Executive Council resolution of 26 April 2012 rejected.