Victorian Numbered Acts

ASSOCIATIONS INCORPORATION AMENDMENT ACT 2009 (NO. 12 OF 2009) - SECT 6

After section 14B of the Principal Act insert —

        " 14C     Oppressive conduct

    (1)     A member or former member of an incorporated association may apply to the Magistrates' Court for an order under this section on the ground that the incorporated association has engaged, or proposes to engage, in oppressive conduct.

    (2)     Unless the Magistrates' Court grants leave to apply at a later date, an application under subsection (1) by a former member must be made within 6 months of the person ceasing to be a member of the incorporated association.

    (3)     The Magistrates' Court may only grant leave to a former member to make an application under subsection (1) later than 6 months after the person has ceased to be a member of the incorporated association if the Magistrates' Court is satisfied that there is sufficient public interest to do so.

    (4)     On hearing the application, the Magistrates' Court may, if satisfied that the incorporated association has engaged, or proposes to engage, in oppressive conduct, make one or more of the following orders—
s. 6

        (a)     an order for regulating the conduct of the incorporated association's affairs in the future;

        (b)     an order directing the incorporated association to institute, prosecute, defend or discontinue specified proceedings, or authorising a member of the incorporated association to do so on behalf of the incorporated association;

        (c)     an order restraining a person from engaging in specified conduct or from doing a specified act or thing;

        (d)     an order requiring a person to do a specified act or thing;

        (e)     an order for the alteration of the rules of the incorporated association;

        (f)     an order that a former member be reinstated as a member of the incorporated association;

        (g)     an order terminating a person's membership of the incorporated association;

        (h)     an order under section 31D(2), appointing a statutory manager of the incorporated association;

              (i)     subject to subsection (5), any other order that is, in the opinion of the Court, necessary to remedy any default or resolve any dispute.

    (5)     The Magistrates' Court must not make an order that an incorporated association be wound up.

    (6)     The Magistrates' Court must transfer a proceeding under this section to the Supreme Court if—

        (a)     the Magistrates' Court has explored all possible avenues of achieving a negotiated settlement and a negotiated settlement has not occurred; and

        (b)     it appears to the Magistrates' Court that an order that the incorporated association be wound up may be an appropriate order in the proceeding.

    (7)     If a proceeding has been transferred to the Supreme Court under subsection (6), it may be continued and completed as if steps taken in the proceeding prior to the transfer had been taken in the Supreme Court.

Note

The same applies to a proceeding transferred to the Supreme Court under section 53B(1)(a).

    (8)     In a proceeding under this section, the Supreme Court may make—

        (a)     an order that the incorporated association be wound up; or

        (b)     any order the Magistrates' Court may make under subsection (4).

    (9)     The Supreme Court must not make an order under this section that an incorporated association be wound up if it is of the opinion that the winding up of the incorporated association would unfairly prejudice members affected by the conduct of the incorporated association.

    (10)     If an order is made under this section that an incorporated association be wound up, the provisions of Part VIII apply as if the order had been made under Division 2 of that Part.

    (11)     If an order under this section makes any alteration to the rules of an incorporated association—

        (a)     the alteration has effect as if it had been duly made by a special resolution of the incorporated association; and

        (b)     the incorporated association does not have power to make further alterations to the rules inconsistent with the provisions of the order, except with the permission of the Court that made the order.

    (12)     Within 14 days of the making of an order under this section, the person who applied for the order must lodge a copy of the order with the Registrar.

Penalty:     10 penalty units.

    (13)     For the purposes of this section—

        (a)     "oppressive conduct", in relation to an incorporated association, includes conduct that is—

              (i)     unfairly prejudicial to, or unfairly discriminatory against, a member of the incorporated association (including in the member's capacity as a member of the committee); or

              (ii)     contrary to the interests of the members of the incorporated association as a whole; and

        (b)     a reference to engaging in conduct includes a reference to refusing or failing to take action.".