FRIENDLY SOCIETIES' ACCOUNTS

Evening Post, Volume LXXXIX, Issue 150, 26 June 1915, Page 8

FRIENDLY SOCIETIES' ACCOUNTS

QUESTION OF INTERPRETATION

An interpretation of the law relating to friendly societies' funds was contained in a judgment delivered by the Court of Appeal to-day. The case was a special ohe remitted from Napier, and the plaintiffs were Frederick Cook, William J. Francis, and Charles Biggs, trustees of Court Heretaunga, No. 6553, a branch of the Ancient Order of Foresters, and the defendants William A. Donaldson, John Kennedy, and Alfred 0. Menefy, trustees of the principal society. The principal society, so it appeared at the hearing, passed certain amendments to its rules bearing on the sick and funeral fund. The plaintiffs' society (Court Heretaunga), believing such amendments to be wholly ultra vires and void, refused to be bound by them, and the principal society purported to suspend the branch. The Supremo Court wag invoked in regard to the anmended rules, and the Chief Justice declared that only one of the rules was ultra vires and void. In March last year, the principal society again amended th© rules, and when the branch declined to comply it was expelled. The branch then commenced an action to obtain a declaration that the amended rules were ultra vires and void, and that the act of expulsion was illegal and void. An injunction was also sought against the principal body enforcing the amendments, which had the effect of placing all sick and funeral funds ■under the administration of district societies instead of branch societies, who, prior to the amendments, controlled their own sick and funeral funds. The Court decided unanimously that the amendments were ultra vires. At the hearing, Mr. C. P Skerrett, K.C., with him Mr. H. B. Lutsk, of Napier, appeared for tho plaintiffs, and Sir Francis Bell, K.C., and Mr. W. G. Wood, of Napier, for the defendants. The cfuestion of costs had been agreed upon by the parties before the case was heard.