Is it UA?
Stipulated expressly in the problem conclusive
Not stipulated ask
Owned by individual/company = legal personality (company law)
2 or more persons bound together for one or more common purposes w/mutual rights & obligations in an organisation which has rules governing the use of property, and which can be joined/left at will (Lawton LJ in Burrell) = UA
Has it dissolved + when?
Assets can only be distributed if dissolved!
Do facts put together carry sufficient conviction that association is at an end & not merely dormant?
not dissolved just b/c impractical to operate (ReWilliams Delby Sick Fund)
need positive acts + inactivity (mere inactivity will suffice where it’s prolonged) (ReGNKSportsClub)
4 ways in which can dissolve (Brightman J)
In acc. w/rules
By agreement of all interested persons
Court order
Substratum upon which it was founded has gone (i.e. purpose no longer effective)
watch out for ambiguity in purpose – e.g. to reduce noise in the airport: depends on whether a particular airport (which has closed, hence purpose no longer effective) or any airport
Only one person left = dissolved b/c can’t associate w/himself assets are divided as follows:
Originally, bona vacantia (ReBucks)
Currently – to remaining members b/c contract governing the use of property no longer operative, hence can severe their share (Hanchett Stamford v AG)
Date of dissolution – if unclear, court must pick a reasonable date
If result in the end is unfair, try tweaking it
If few possibilities, analyse all
Has each donation been made validly?
Important b/c determines whether goes back on RT or can be divided amongst members in acc. w/rules
UA can’t own payments made b/c not a legal person must construe as one of the following (Leahy v AG of New South Wales)
A gift to existing members beneficially
Problematic b/c each can severe their share immediately, contravening donor’s intent
A gift to existing & future members beneficially
Likely to fail b/c of perpetuity
Absolute gift to members (usually, for one (Treasurer) to hold on trust for others b/c easier + rules limiting no of people who can hold certain types of interests; e.g. s? LPA 1925) which takes effect as accretion to existing funds under contract
Requirements
Beneficial transfer
Existence of contract governing the holding/use of property
If transfer is made w/some qualification as to use (e.g. to LawSoc for purposes of mooting ReLipinski
Theoretical problems
ensuring Treasurer holds on self-imposed trust depends on contract governing the use & holding of property
Downside – donor doesn’t have much impact
formalities – disposition of equitable interest when old members leave & new join
Penner – implied contractual right for Treasurer to vary membership – add & take away
shifting membership
contract “binds” property – not theoretically possible
argue members are bound by contract in their use of property instead?
members can waive/vary the contract by agreement
Purpose trust w/ascertainable beneficiaries (ReBowes type trust as used in ReLipinski)
Oliver J (ReLipinski)
Donor’s intent in identifying the purpose was to benefit members (e.g. for Maccabi association for construction/maintenance of new buildings) = valid
Donor’s intent was clearly not to confer any particular benefit on anyone/to benefit ascertainable group of people (e.g. general purposes of association) = fails (can’t make a gift to object or purpose – Neville Estates v Madden)
Key question: end enforcement/interest in enforcement
How to determine?
Default position – contract holding theory (ReBucks)
Donor can choose
usually, won’t say so explicitly
Donation is genuinely intended for benefit of the members – apply contract...
Ambitious and intelligent students
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