49Court orders concerning patriotic funds that are not functioning properly

49 Court orders concerning patriotic funds that are not functioning properly

(1) This section applies if—

(a) in the opinion of the Director, there has been one or more instances of maladministration in relation to a patriotic fund, including instances where a trustee has breached duties as a trustee; or

(b) the trustees of a patriotic fund have, or a trustee of a patriotic fund has, failed to comply with this Act or any order, direction, condition or instruction applying under this Act; or

(c) the trustees of a patriotic fund cannot be found or their identities cannot be ascertained; or

(d) there are an insufficient number of trustees of a patriotic fund to be able to make decisions in respect of the patriotic fund in accordance with the terms of the fund's trust deed; or

(e) one or more of the trustees of a patriotic fund is not eligible to be a trustee of a patriotic fund and has not retired or been removed as a trustee; or

(f) one or more of the trustees of a patriotic fund has been out of Victoria for more than 12 months without properly delegating functions as a trustee to a person in Victoria.

(2) The Director may apply to the Magistrates' Court for an order to do one or more of the following—

(a) to prohibit, either unconditionally or with conditions, dealings with any assets of the patriotic fund for a specified period;

(b) to authorise dealings with any assets of the patriotic fund;

(c) if subsection (1)(c), (1)(d), (1)(e) or (1)(f) applies, to authorise a person (including the Victorian Veterans Council) to act as a trustee of the patriotic fund;

(d) to authorise the Victorian Veterans Council to act as sole trustee of the patriotic fund;

(e) if subsection (1)(e) applies, to bar a person who is ineligible to be a trustee of the patriotic fund from taking any action as a trustee in relation to the patriotic fund;

(f) to appoint an administrator of the patriotic fund on the terms specified by the Court.

(3) The Court may make any consequential order it thinks is necessary to give effect to any order that it makes under subsection (2).

(4) The Court must not make an order under subsection (2) or (3) unless the trustees of the patriotic fund have been given an opportunity to be represented in the proceedings.

(5) An order made under subsection (2)(c) takes effect as if the person authorised by the order had been appointed as a trustee to the patriotic fund in accordance with the terms of the patriotic fund's trust deed.