Winding up of society sought

Press, Issue 33845, 17 May 1975, Page 9

Winding up of society sought

Because of total disagreement between North and South Island factions, the affairs of the Federation of New Zealand-United Kingdom Societies, Inc., were deadlocked, Mr G. K. Panckhurst said in the Supreme Court yesterday when seeking an order to have the federation wound up.

Mr Justice Macarthur, who said that this was the first time since he had been on the Bench that he had received such an application, indicated that he would make an order winding up the federation but reserved his decision on the formal terms of it. The federation was formed to organise cheap charter flights to Britain by British immigrants in New Zealand. Mr Panckhurst applied for the winding-up order on behalf of William Greenwood, a purchasing officer, of Dunedin; Francis Derek Whiilis, a machine tuner, of Christchurch; and Gerald Francis Matthews, a photolithographer, of Christchurch. “JUST AND EQUITABLE” Mr Panckhurst said that the application was made on the grounds of section 27 of the Incorporated Societies Act that it would be just ana equitable to wind up the society. The secretary of the federation in Wellington had taken legal advice on the matter and it had become clear that the deadlock between the two factions was complete. Late last year, the secretary had unilaterally called a meeting at which motions were purported to be passed expelling the president, vice-president, and treasurer.

The differences were so great that it was obvious that the federation would not work, and the winding, up order was sought to prevent the funds of the organisation being squandered on long legal actions and to protect the position of officers.

The important matter which arose from the proposal to wind up was the distribution of the federation’s assets — some $13,000 frozen in a bank account. Section 27 of the Incorporated Societies Act provided for all surplus assets to be disposed of as provided in the rules of the society except for money held on trust.

The bulk of the money in the bank account, $10,500, belonged to the Wellington New Zealand-United King-;

dom Society and had been paid by members of the society as deposits on a charter flight to Britain which had since been abandoned. The secretary had re-' ceived threats and demands) from members who wanted! their money returned. The! $10,500 had to be regarded! as money held in trust. RESOLUTIONS PASSED At the last annual general meeting of the federation, two resolutions had been passed that certain moneys! be refunded to certain clubs! and that affiliation fees be i refunded, Mr Panckhurst! said.

An attempt had been made to call a special general meeting to discuss the distribution of the federation’s assets, but the officers’ powers to do so had been challenged on the ground that they no longer held office. Mr Panckhurst asked that the society be wound up, that the assistant registrar of incorporated societies at Christchurch (Mr I. A. Hansen) be appointed liquidator, and that the question of the division of assets be adjourned for four weeks.