A recent peculiar case from the QLD Court of Appeal (COA) is a timely reminder that a Court will only wind-up a solvent incorporated association on just and equitable (J&E) grounds 🚨 AS A LAST RESORT 🚨 despite a legal war between two camps.
The Association: Congregational Christian Church In Samoa-Australia (Ipswich Congregation)
Camp 1: 21 Members of the Association (or “the Remainer Group”)
Camp 2: Minister of the Church and other Members (or “the Reupena Group”)
From what I can gather, Camp 1 did not want the Association to cut ties with its Mother Church in Samoa, whereas Camp 2 did.
This was the start of plenty of accusations, animosity and a finding about the Association’s “autocratic leadership … without reference to the constitution‼️”
Camp 1 wanted a J&E wind-up, but lost. Rather, a Receiver was appointed to the Association to determine who the Members were and to vote in new leaders.
Key points: 👇
* not a typical J&E case, where members seek to have their investments returned. Rather, the proper interest is the successful operation of the Church
* a wind-up in these circumstances must be a last resort
* Receivership would likely produce a better outcome
* if wound-up, sections in the Corporations Act would apply