Faamate & Ors v Congregational Christian Church in Samoa-Australia (Ipswich Congregation) & Ors

[2020] QCA 87

Queensland Court of Appeal

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Interrogate

Catchwords

1. Associations and Clubs
2. › Incorporated associations
3. › Winding up
4. › Just and equitable ground
5. › Whether winding up should be ordered where alternative remedy of appointment of receivers available
6. › Whether solvent association should be wound up as remedy of last resort
7. › Associations Incorporation Act 1981 (Qld), s 90(1)(e)
1. Associations and Clubs
2. › Incorporated associations
3. › Use of corporate funds
4. › Defence of litigation between rival groups of members
5. › Whether proper application of association's funds to defend indefensible conduct
6. › Whether misapplication of funds justified winding up on just and equitable ground
1. Corporations
2. › Winding up
3. › Just and equitable ground
4. › Non-commercial entities
5. › Whether categories of conduct justifying winding up apply to non-commercial incorporated associations
6. › Whether alternative remedy of receivership adequate

Quick Take

An incorporated association may properly expend funds to defend a winding up application on insolvency grounds and to litigate membership disputes relevant to standing, but it is not a proper application of funds to defend actions clearly inconsistent with the procedural requirements of the governing Act and constitution. The winding up of a solvent non-commercial incorporated association on the 'just and equitable' ground is a remedy of last resort, and the appointment of receivers to determine membership and conduct elections may be an adequate alternative remedy even where there has been significant mismanagement and oppression.