An honest and reasonable belief that no trust exists, and that an association's constitution is the paramount authority governing its dealings with property, negates the dishonesty required for accessorial liability under the second limb of Barnes v Addy, even where the alleged accessory knew that the association's actions breached church law. Incorporation of an unincorporated association under the Associations Incorporation Act 1984 (NSW) does not extinguish a pre-existing charitable trust over property held by the association; Schedule 2 vests only the interest the unincorporated association actually held, and clause 2(2)(b) preserves rather than extinguishes charitable trusts. The question whether the two limbs of Barnes v Addy are exhaustive of the bases for accessorial liability for breach of trust was left open.
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