Deck 9: Clubs and Societies

Question 1

What is the problem that equity has been called upon to solve in relation to ownership of property by unincorporated clubs or societies?

A) Members cannot easily open bank accounts or arrange functions.
B) The fact that such societies have no legal personality means that cannot function until they are incorporated.
C) Members cannot raise funds by subscription to fund activities.
D) Lack of legal personality means that societies cannot receive legacies or easily distribute assets on dissolution of the society.

Answer 1

D

Question 2

Which of the following is not a theory advanced by the courts to permit unincorporated associations to hold and enjoy the benefits of property?

A) The association's property and assets are held under a mutual contract by the members, subject to the association's rules.
B) The association's property and assets are held on a charitable purpose trust for the society.
C) The association's property and assets are held on trust for the purposes of the members.
D) The association's property and assets are treated as a gift to the present members beneficially.

Answer 2

B

Question 3

In Re West Sussex (1930) Fund Trusts [1971] Ch 1 most of the surplus property on dissolution of an unincorporated association went to the Crown, not the members. This was not the case on similar facts in Re Bucks Constabulary Fund (No 2) [1979] 1 WLR 936. Which of the following statements best explains the legal reasons for the difference in the decisions? (Think carefully before answering).

A) The association in Re West Sussex was subject to different rules of the association governing membership than in Re Bucks, and the rules did not provide sufficient clarity so the property went to the Crown bona vacantia.
B) In Re West Sussex, the donors of funds could not be identified, so passed to the Crown, but they were identifiable in Re Bucks.
C) In Re Bucks, the court applied the mutual contract theory, whereas in Re West Sussex the court applied the presumptions of resulting trust and bona vacantia.
D) In Re West Sussex, most of the original members of the association were dead, but in Re Bucks the majority were still alive.

Answer 3

C

Question 4

The decision in Hanchett-Stamford v Attorney-General [2009] Ch 173, was an important example of the rules of distribution of assets and whether members are entitled. Which of the following statements is correct as to the distribution of the Performing and Captive Animal's Defence League's (PCAD's) assets?

A) The assets belonged to the PCAD, as the organisation was a charity set up to prevent animal's being used in performances.
B) Mrs Hanchett-Stamford was entitled to the assets as the last surviving member of the association.
C) The assets went to the Crown bona vacantia.
D) Mrs Hanchett-Stanford was entitled to the assets, as there was a resulting trust for her as the only surviving member.

Question 5

The dominant approach of member's owning the assets of an unincorporated association between themselves is not without problems. Which of the following statements is not one of these valid criticisms?

A) It deprives the Crown of assets which it should be entitled to, bona vacantia.
B) It is not universally applicable, so that in some areas the courts still prefer the resulting trust analysis.
C) Members of clubs may not expect to be entitled to any property assets as members.
D) The members may get a windfall as a result of the association ceasing to exist.