6. HOW UNINCORPORATED ASSOCIATIONS TAKE AND HOW THEY ARE DISSOLVED
(Week 6)
Gifts to or for the benefit of unincorporated association:
Problems will only arise if the association is not charitable. Unincorporated associations,
unlike a company either limited by shares or by guarantee do not have separate
personality.
How the unincorporated association takes.
o Neville Estates v Madden [1962] Ch.832: Cross J suggested that a gift to an
unincorporated association might have one of three effects. The gift may
be a simple gift to members of the association, at the date of the gift, as
joint tenants.
Gift (subject to contractual rules).
Leahy v Attorney – General for New South Wales [1959] AC 457
Facts: a testamentary gift made by the widow of a wealthy man. Left residuary
estate: “(my homestead and furniture)” upon trust for such orders of nuns of the
catholic church or the Christian Brothers as my executors and trustees shall select”.
Decision: this was a purpose trust in disguise. This was not a charity because not all
religious orders are charitable. It was so wide that some orders may be
contemplative orders, rather than pursing extraneous good works. So taking a broad
view of construction it was void- could further non-charitable purposes.
Cf. now the “contract-holding theory” of gifts to unincorperated associations.
Re Grant’s Will Trusts [1980] 1 WLR 360.
The deceased left property to the Labour party committee.
Held: a trust created by making gift to the members on an unincorporated association as at
the date of the gift can be wound up only if under the rules, the members could, at any
time, resolve to terminate the trust and distribute the fund to themselves.
Subject to contractual rights and duties of the members
o Re Recher’s W.T. [1972] Ch.526
Trust analysis
o Re Lipinski’s Will Trusts [1976] Ch 235.
Failure of the unincorporated association
Surplus pension funds: Air Jamacia v Charlton [1999] 1 WLR 1399.
Resulting Trust analysis
Re Gilligham Bus Disaster Fund [1958] Ch 300.
Cunnack v Edwards [1896] 2 Ch 679.
Re West Sussex Constabulary’s Widows Children and Benevolent Fund [1971] Ch 1.
Re Denley’s Trust Deed [1969] 1 Ch 373. Saunders v Vautier (1841) 4 Beav 115.
(Week 6)
Gifts to or for the benefit of unincorporated association:
Problems will only arise if the association is not charitable. Unincorporated associations,
unlike a company either limited by shares or by guarantee do not have separate
personality.
How the unincorporated association takes.
o Neville Estates v Madden [1962] Ch.832: Cross J suggested that a gift to an
unincorporated association might have one of three effects. The gift may
be a simple gift to members of the association, at the date of the gift, as
joint tenants.
Gift (subject to contractual rules).
Leahy v Attorney – General for New South Wales [1959] AC 457
Facts: a testamentary gift made by the widow of a wealthy man. Left residuary
estate: “(my homestead and furniture)” upon trust for such orders of nuns of the
catholic church or the Christian Brothers as my executors and trustees shall select”.
Decision: this was a purpose trust in disguise. This was not a charity because not all
religious orders are charitable. It was so wide that some orders may be
contemplative orders, rather than pursing extraneous good works. So taking a broad
view of construction it was void- could further non-charitable purposes.
Cf. now the “contract-holding theory” of gifts to unincorperated associations.
Re Grant’s Will Trusts [1980] 1 WLR 360.
The deceased left property to the Labour party committee.
Held: a trust created by making gift to the members on an unincorporated association as at
the date of the gift can be wound up only if under the rules, the members could, at any
time, resolve to terminate the trust and distribute the fund to themselves.
Subject to contractual rights and duties of the members
o Re Recher’s W.T. [1972] Ch.526
Trust analysis
o Re Lipinski’s Will Trusts [1976] Ch 235.
Failure of the unincorporated association
Surplus pension funds: Air Jamacia v Charlton [1999] 1 WLR 1399.
Resulting Trust analysis
Re Gilligham Bus Disaster Fund [1958] Ch 300.
Cunnack v Edwards [1896] 2 Ch 679.
Re West Sussex Constabulary’s Widows Children and Benevolent Fund [1971] Ch 1.
Re Denley’s Trust Deed [1969] 1 Ch 373. Saunders v Vautier (1841) 4 Beav 115.
