The Australian Federation of Islamic Councils Inc v Hafez Kassem [2017] NSWSC 206

The Australian Federation of Islamic Councils Inc v Hafez Kassem [2017] NSWSC 206

The Court held that the individual plaintiffs presented a strong arguable case that the postponement of the Special General Meeting was invalid and the subsequent meeting and resolutions (including the 'Proscribed List' resolution) were a nullity. The defendants' use of self-help to assume control weighed against leaving them in control, as did practical considerations regarding the AFIC's compliance with its obligations to the Australian Charities and Not-for-profits Commission. As such, interlocutory orders should be made to restore interim control to the individual plaintiffs pending a member meeting to resolve final control.

Parties
First Plaintiff: The Australian Federation of Islamic Councils Inc; Second Plaintiff: Harun Abdullah; Third Plaintiff: Jamal El Kholed; Fourth Plaintiff: Kazin Ates; First Defendant: Hafez Kassem; Second Defendant: Farouk Khan; Third Defendant: Refaat El-Hajje; Fourth Defendant: Mohammed El-Mouelhy; Fifth Defendant: Bachar Dib; Sixth Defendant: Amjad Mehboob; Seventh Defendant: Agim Garana; Eighth Defendant: Kylie Wee; Ninth Defendant: Holly Soh
Jurisdiction
Australia
Judgment Date
03 March 2017
Procedural Posture
Interlocutory Application / Interlocutory (injunction Pending Final Hearing)
Outcome
Interlocutory injunction granted to restore interim control of AFIC to individual plaintiffs, with orders for a meeting to determine future control and prevention of use of AFIC funds for litigation costs.
Legal Topics
Injunctions, Interlocutory Relief, Status Quo, Associations
Equity Injunctions Interlocutory Relief Status Quo Associations

Case Brief

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Parties

The Australian Federation of Islamic Councils Inc

First Plaintiff

Harun Abdullah

Second Plaintiff

Jamal El Kholed

Third Plaintiff

Kazin Ates

Fourth Plaintiff

Hafez Kassem

First Defendant

Farouk Khan

Second Defendant

Refaat El-Hajje

Third Defendant

Mohammed El-Mouelhy

Fourth Defendant

Bachar Dib

Fifth Defendant

Amjad Mehboob

Sixth Defendant

Agim Garana

Seventh Defendant

Kylie Wee

Eighth Defendant

Holly Soh

Ninth Defendant

Procedural Posture

Interlocutory Application / Interlocutory (injunction Pending Final Hearing)

Legal Issues

  1. 1 Which faction should have interim control of AFIC pending a final hearing?
  2. 2 Were the resolutions passed at the purportedly adjourned meeting on 11 February 2017 valid?
  3. 3 Should an interlocutory injunction be granted to restore the individual plaintiffs' control?

Ratio Decidendi

The Court held that the individual plaintiffs presented a strong arguable case that the postponement of the Special General Meeting was invalid and the subsequent meeting and resolutions (including the 'Proscribed List' resolution) were a nullity. The defendants' use of self-help to assume control weighed against leaving them in control, as did practical considerations regarding the AFIC's compliance with its obligations to the Australian Charities and Not-for-profits Commission. As such, interlocutory orders should be made to restore interim control to the individual plaintiffs pending a member meeting to resolve final control.

Court Disposition

Interlocutory injunction granted to restore interim control of AFIC to individual plaintiffs, with orders for a meeting to determine future control and prevention of use of AFIC funds for litigation costs.

Orders

  • Plaintiff to bring in short minutes of order to give effect to the reasons.
  • Matter listed before the Registrar on 13 March 2017.