Trusts groupu 4 - unincorp assoc.

Question 1

Re Endacaott

Answer 1

Crts reluctant to allow Ts to work outside ‘gifts of imperfect obligation’

Question 2

Policy underlying Unincorp. Assoc rules

Answer 2

Encourage community benevolence

Question 3

If the gift to Unincorp assoc = non-chrtbl then…?

Answer 3

may fail - defeats s’or intention & policy of community benevolence

Question 4

Conservative v. Burrell

Answer 4

Unicorp Assoc =
2+ mbrs;
bound for common purpose;
mutual rights and duties;
rules govern who controls assoc. & how funds are used.
Mbrs - must be able to join/leave at will;
no legal personality;
contract holding theory - donor can ask for funds back if Assoc. is wound up

Question 5

Re Recher

Answer 5

gifts for Unicorp assoc = problematic ;
gifts can be made in 4 ways :
1) outright gift;
2) Gift on Trust for assoc's purpose;
3) T. for mbrs & future mbrs;
4) outright gift to mbrs as JTs subject to contractual obligations (contrave holding theory)

Question 6

Denby sick & benevolent fund

Answer 6

Brightman J - 4 ways for dissolution:

1) Voluntaily wound up by mbrs;
2) an event leads to automatic dissolution;
3) permanent loss of substratum;
4) winding up by crt

Question 7

Unincorp. Assoc. Methods of holding property

Answer 7

If Excess money held by mbrs / treasurer - it goes to mbrs on dissolution equally; money not based on contributions but mbrshp.

1) Outright gift;
2) trust for purpose of assoc.
3) T. for mbrs (inc. future)
4) Gift for mbrs subject to contractual obligations

Question 8

Outright Gift

Answer 8

Each mbr takes prop as gift & holds on JT/TIC - any mbr can sever;
Re Grant - rare unless clear evidence of intention;
cocks v manners - any ambiguity in gift & crt looks to nature of gift - money is likely split, land is not (thus R.T.)

Question 9

Re Grant;

Answer 9

Vinelott J - unlikely for U.A. mbrs to hold on JT unless clear evidence of Sor intention;
* contract holding - mbrs can vote to change rules & thus do what they want with property;

Question 10

Cocks v Manners

Answer 10

If any ambiguity in gift to U.A. then crt looks to nature of property for intention - if money - then can be slplit b/twen mbrs, if land, cannot be split & more likely R.T.

Question 11

T. for purpose of Assoc.

Answer 11

neither Chrtbl no under exception thus likely to fail & = R.T. back to S’or
Case Leahy v Ag NSW - mbrs need to be able to do what they want w/ the property

Question 12

Leahy v. A/G NSW

Answer 12

Members need to be able to do what they want with the property - T. or purpose of assoc is likely to fail if not Chrtble nor under exception & gift goes back on R.T. to S’or

Question 13

T. for mbrs inc. future ones

Answer 13

Possible IF:
- current mbrs hold Prop. on T. for selves & future mbrs;
- complies w/ rule of perpetuity; (leahy)
- perp. prd = 80 yrs - must vest in ALL mbrs by this time;
problems: mbrs fluctuate - what happens to those who leave?;
how wld shares be allocated btwn new mbrs & long time ones?

Question 14

Gift for mbrs subject to contractual obligations

Answer 14

• prop cannot vest in club b/c club not a legal personality;
• prop vests in mbrs for time being & ownership determined by rules of club;
  Advs - causes no perpetuity problems b/c property vest immediately;
  DisAdv - May go against S’ors intention;

Question 15

Dissolution - assets distributed in what way?

Answer 15

1) Automatic Resulting Trusts;
2) Bona Vacantia;
3) Contractual obligations;

Question 16

How does asset distribute under Automatic Resulting Trust

Answer 16

If assoc. funds are held on T. for mbrs, then on dissolution, the surplus goes on R.T. to contributors in proportion w/ contribution;
PROBLEMS - unworkable with street collections - Gillingham bus
* wld mean dead member’s estates wld get a share - Sick & funeral society

Question 17

Unincorp Assoc - Gillingham Bus

Answer 17

dissolution of unincorp assoc - Auto. R.T. - handing money back to donors on R.T. = unworkable where donors are non-discoverable;

Question 18

Unincorp.Assoc - Sick & Funeral society of St. John

Answer 18

Unincorp.Assoc. - disslution - Auto. R.T. = problem b/c dead mbr’s estates entitled to a share

Question 19

Bona Vacantia

Answer 19

when Unincorp.Assoc dissolves - surplus prop. from gifts to go to crown - Re West Sussex Constbulary;;
Re Bucks - Limited to only when Club = moribund ( no mbrs left)

Question 20

Re Bucks

Answer 20

Unincorp.Assoc. dissolution - surplus funds go to crown but only when club has no more mbrs left;

Question 21

Re West Sussex Consabulary

Answer 21

Goff J - outward looking clubs - no intention for mbrs to keep gifts - surplus shld go to crown.

Question 22

Unincorp.Assoc - Contract Obligations

Answer 22

Re Bucks - Walton J :
- Use of funds determined by contract binding club mbrs;
- surplus dealt w/ as determined by rules of club;
- if nothing express, implied rule = shared equally;
Benefit - makes sense - if pre-dissolution the assets are held by mbrs subject to contract, then on dissolution, ownership shld be absolute

Question 23

political parties as unicorp.assoc

Answer 23

cannot hold assets under contract holding theory - Conservatives v burrell - donor can ask for funds back on dissolution of political unincorp.assoc.