Victorian Consolidated Legislation

Associations Incorporation Act 1981 - SECT 14A

Enforceability of rules and purposes

14A. Enforceability of rules and purposes



(1) The rules of an incorporated association constitute the terms of a
contract between the incorporated association and its members for the time
being.





(1A) Subject to this Act, an incorporated association must not-

   (a)  exercise any power that the incorporated association is prohibited, by
        the rules of the incorporated association, from exercising; or

   (b)  exercise any power contrary to a restriction on the exercise of that
        power contained in the rules of the incorporated association; or

   (c)  do any act that is outside the scope of the statement of purposes of
        the incorporated association.

(1B) The public officer or a member of the committee of an incorporated
association must not in any way, by act or omission, directly or indirectly,
be knowingly concerned in or party to a contravention by the incorporated
association of subsection (1A).

(2) The Magistrates' Court may, on the application of an incorporated
association, a member of an incorporated association or the Registrar, make an
order-

   (a)  giving directions for the performance and observance of the rules of
        the incorporated association by any person who is under an obligation
        to perform or observe those rules; or



   (ab) restraining an incorporated association from doing an act that is
        outside the scope of its statement of purposes; or

   (b)  declaring and enforcing the rights or obligations of members of the
        incorporated association between themselves or the rights or
        obligations of the incorporated association and any member between
        themselves.

(3) An order may be made under this section whether or not a right of a
proprietary nature is involved and whether or not the applicant has an
interest in the property of the incorporated association.

(4) The Magistrates' Court may refuse to make an order on the application or
may make an order for costs against a party, whether successful or not, if it
is of opinion that-

   (a)  the issue raised in the application is trivial;

   (b)  having regard to the importance of the issue, the nature of the
        incorporated association, any other available method of resolving the
        issue, the costs involved, lapse of time, acquiescence or any other
        relevant circumstance, it was unreasonable to make the application; or

   (c)  the unreasonable or improper conduct of a party has been responsible
        for the making of the application, or has added to the cost of the
        proceedings.

(5) The Registrar may make an application to the Magistrates' Court under
subsection (2) only if the Registrar is satisfied that it is in the public
interest to do so.