Incorporated society members fined for contempt of Court

The High Court has fined two members of an incorporated society after they were ordered to hand over documents as part of proceedings in relation to the election of officers and the AGM of the society.  The two members failed to hand over the documents and the Court held that they were in contempt and fined each of them $750.  The fines would have been in the range of $8,000 to $10,000 had the members had the ability to pay more substantial fines.

The two members claimed that the documents were stolen in a burglary and therefore they did not have them to hand over.  The High Court did not accept that that explanation was true.  As well as the fine the two members were barred from taking any further part in the substantive proceedings in respect of the holding of the AGM.

If you have concerns about the operation of a not for profit society it pays to speak to a professional experienced in the area.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.