© 2026 Zoe. All rights reserved.
Zoe is a legal information platform. Always consult the Federal Register of Legislation for authoritative text.
[2001] VSC 364
Supreme Court of Victoria
2001-09-26
Ashley J
Original judgment source is linked above.
[2001] VSC 364
Incorporated Association - rules - rule concerning expulsion of members - whether member's expulsion in accordance with rule. Appeal - s. 109, Magistrates' Court Act 1989 - whether question of law open for consideration by Supreme Court.
"8. The purported expulsion of the Plaintiffs from the Association was unlawful and contrary to the Rules of the Association and the Associations Incorporation Act 1981 (Vic).
PARTICULARS
(a) The expulsions of the Plaintiffs were in breach of Rule 2.6 of the Rules of the Defendant. (b) The meeting of 22 December 1999, originally called for the purposes of the First Plaintiff showing cause why he ought not be expelled was:- (i) not preceded by the provision of a notice of intended resolution of expulsion, provided to the member pursuant to Rule 2.6 (1); and (ii) abandoned by the Secretary, Mr Ken Hore, without proceeding to allow the First Plaintiff to address that meeting. (c) The Defendant by its letter to the First Plaintiff dated 10 December 1999 waived any requirement that the First Plaintiff provide any explanation prior to the meeting of 22 December 1999. A copy of the said letter dated 10 December 1999 may be inspected at the office of the Plaintiffs' solicitors by appointment. (d) The alleged meeting of 6 January 2000 was not preceded by the provision of a notice of intended resolution for expulsion in breach of Rule 2.6(1) of the Rules. 9. The Defendant, through the Committee of Management, failed to accord the Plaintiffs natural justice.
PARTICULARS
(a) The Plaintiffs were not informed of the meeting of the Committee of Management, resolving to expel the Plaintiffs on 6 January 2000 and consequently did not attend or have any opportunity to address that meeting. (b) The Plaintiffs were not given an opportunity to deny allegations against them which were said to be the basis of the purported expulsions. (c) The Plaintiffs were not given an opportunity to be informed of the specific allegations made against them and were not given an opportunity to be heard in relation to them. (d) The purported expulsions were not in good faith and were infected with bias, in that three of the member of the committee, being the President, Mr David Hassett, the Secretary, Mr Ken Hore and Mr Harry Stamoulis, were participants in the events out of which arose the allegations against the First Plaintiff. (e) The resolution and purported expulsion were ultra vires of the Rules of the Association."
Those paragraphs made reference to "the plaintiffs". That reflects the fact that the appellant's wife was at the time a party to the proceeding.
"(a) In accordance with the clause 2.6 of the Rules of the respondent (exhibit "PJH-6"), did the respondent's letter dated 10 December 1999 (exhibit "PJH-7") constitute and contain: (i) any or any sufficient notice that the committee of management was to consider a motion to expel the appellant from the club at a meeting on 6 January 2000; (ii) any or any sufficient particulars of conduct injurious to the character of interests of the club; (iii) sufficient request for an explanation by the appellant to the meeting on 6 January 2000? (b) Did the Magistrate err in holding that the appellant did not need to be notified in accordance with Rule 2.6(1) of the meeting at which the resolution to expel him was to be considered? (c) Was the appellant deprived of natural justice in relation to the meeting of 6 January 2000?"
"2.6. Expulsion of Members If any member wilfully refuses or neglects to comply with the provisions of the Rules or By-laws of the Club or shall be guilty of any conduct either within or outside the Club premises which shall, in the opinion of two-thirds of the members of the Board who are present at a meeting especially summoned to consider the case, be injurious to the character or interests of the Club, such member shall be liable to expulsion by a resolution of the Board subject to the following: (1) At least seven days before the meeting at which such resolution is to be passed, the member shall have written notice by prepaid letter sent to the address in the Register giving particulars of such conduct and notice of the intended resolution for expulsion and requesting an oral (verbal) or written fitting explanation to the meeting before the passing of such resolution. (2) The Board may, if it thinks fit, give the member the option of resigning from the Club before the date of such meeting subject to the payment by such member of any subscription or other sum due by him to the Club. (3) If the member so requested shall not before the date of the meeting especially summoned to consider the case either offer an explanation satisfactory to the Board or resign, such member may be removed from the Register of the Club at the discretion of the Board and the Board shall not be required to supply any reason for such removal. (4) The members shall have the power of calling an Extraordinary General Meeting in accordance with these Rules for the purpose of amending, reversing or confirming any decision of the Board to suspend a member. The meeting must be called within one month of the date on which the member ceased to be a member of the Club. (5) Any member expelled under this rule shall forfeit all right in or claim upon the Club and its property (except any debenture or debentures) held by him or her."
(1) One circumstance in which a member is liable to expulsion by resolution of the Board is that the member "shall be guilty of conduct ... which shall, in the opinion of two-thirds of the members of the Board especially summoned to consider the case, be injurious to the character or interests of the club".
(2) A member is not to be liable to the sanction of expulsion without having been given, at least seven days before the meeting at which such resolution is to be passed, written notice particularising the impugned conduct and the intended resolution, and requesting an explanation before the passing of a pertinent resolution.
(3) In the absence of satisfactory explanation the Board may remove the name of the member from the Register of club members - this implying a prior resolution to expel the member.
"The Board of Directors has convened a meeting on the 22nd December 1999 at 6.00 pm as it considers your conduct as a member to be injurious to the character and interest of the club. The Board requests your attendance at this meeting to show cause why you should not be expelled from membership of the club."
"+ Your constant threats or actions in casting doubt on, or openly questioning the integrity of the club management, financial affairs, auditors and directors with authorities such as the Taxation Office, Liquor Control Commission and Gaming Authority. + Advice volunteered by a cross-section of members that you constantly and openly criticise around the club the conduct of club affairs by Management and the Board. + You were previously called before the Directors to show cause why you should not be expelled as a member and advised that any further misdemeanors would result in expulsion following a meeting held on 31/08/95. + The Board wishes to advise you that in relation to the motions put by you at the recent Annual General Meeting that the parties cited in the motions are considering their legal options in relation to this matter."
"Hoare.... Well....we will postpone the meeting. I'm not holding the meeting while you've got the tape on Hodgkinson... So you're postponing the meeting Hoare....I'm Postponing the meeting Hodgkinson...All right you will postpone the meeting...TILL WHEN Hoare...Ah.. I'll make that decision in due course, not right now Hodgkinson.... Now..you're acting as Chairman Hoare... Yes I am...The meeting is formally postponed right now Hodgkinson... Mr Hassett is acting as secretary Hoare ...The meeting is postponed Peter.....as of right now... unless you are prepared to turn the tape off Hodgkinson... NO. I'm not... Hoare... The meeting is abandoned. Thank you for coming"
What questions of law may be entertained on the appeal?
+ The second sentence of the first paragraph of the chairman's letter of 10 December 1999 sufficiently gave notice within Rule 2.6(1) "of the intended resolution for expulsion". + The letter of 10 December "adequately set(s) out the conduct which is alleged against" the appellant. + "Once the meeting was abandoned, there was no need to recall it, and the meeting to expel Mr Hodgkinson could properly proceed."
The interpretation of Rule 2.6
Was the impugned conduct sufficiently particularised?
"+ Your constant threats or actions in casting doubt on, or openly questioning the integrity of the club management, financial affairs, auditors and directors with authorities such as the Taxation Office, Liquor Control Commission and Gaming Authority. + Advice volunteered by a cross-section of members that you constantly and openly criticise around the club the conduct of club affairs by Management and the Board."
(1) The appeal be allowed.
(2) The final order made by the Magistrate's court on 18 May 2001 be set aside.
(3) Declare that the purported expulsion of the appellant by resolution made 6 January 2000 was wrongful and was and is of no force and effect.
(4) Order that each party bear its own costs of the proceedings in the Magistrates' Court and of the appeal, save only in respect of the costs the subject of my order of 24 September 2001.
---
[1] As to the last of which see paragraphs 15-18 of the affidavit of Richard Udovenya sworn 3 August 2001.
[2] See p.8 of the factual summary and p.1 of the legal submissions.
[3] Director of Public Prosecutions v. Hinch, Mandie, J., judgment 5 August 1994, unreported; Buckman v. Barnawartha Abattoirs, Smith, J., judgment 14 July 1994, unreported; Popovski v. Ericsson Australia Pty Ltd [1998] VSC 61 at [30] (reversed on another ground on appeal).
[4] Mond v. Lipshut [1999] VSC 103; [1999] 2 VR 342 at paragraphs 32-52.
[5] [2000] VSCA 53 at [45].
[6] [1978] 1 NSWLR 20 at 23-24 (Court of Appeal).
[7] [1976] 1 All ER 12 at 20].
[8] [1977] 2 NSWLR 909 at 923-924.
[9] [1991] FCA 467; (1991) 31 FCR 469 at 493-494.
[10] Counsel for the appellent cited, inter alia, Andricciola v. The Italian Community of Keilor Association Inc. [1996] VicRp 29; [1996] 1 VR 421 at 429 and Cox v. Caloundra Golf Club Inc. & Ors (Thomas, J. Supreme Court of Qld, judgment 27 September 1995, unreported, pp.5-6).
[11] [2001] NSWSC 235 at [8].
[12] Supreme Court of NSW, unreported, judgment 20 October 1992.
[13] [1962] UKPC 2; (1962) AC 322 at 337.
[14] [1999] SASC 188 at [43].
Hodgkinson
Yarra Valley Country Club Inc [2001] VSC 364
(1991) 31 FCR 469