is an

English trusts law English trust law concerns the protection of assets, usually when they are held by one party for another's benefit. Trusts were a creation of the English law of property and obligations, and share a subsequent history with countries across the ...

case, concerning the destination of property that is held by

unincorporated associations A voluntary group or union (also sometimes called a voluntary organization, common-interest association, association, or society) is a group of individuals who enter into an agreement, usually as volunteers, to form a body (or organization) to ac ...

when they wind up. The High Court applied the view that while the association exists, assets are held jointly by the members but according to the terms of the association contract, and when the association ends any surplus funds go to those who were members of the association at the moment of its dissolution. (In the particular case, one sole member survived.)

Facts

The Performing and Captive Animals Defence League was founded as an unincorporated association in 1914, with the purpose of banning animals performing. It was decided the league had no charitable status in 1949, after ''

National Anti-Vivisection Society v IRC National may refer to: Common uses * Nation or country ** Nationality – a ''national'' is a person who is subject to a nation, regardless of whether the person has full rights as a citizen Places in the United States * National, Maryland, ce ...

'', because it was meant to change the law. Mr and Mrs Hanchett-Stamford joined as life members in the mid 1960s; he died in 2006 and she was the sole surviving member of the society. She decided to wind up and give the money to an active animal charity, seeking a declaration that the work and objects of the league were charitable under the

Charities Act 2006 The Charities Act 2006 (c 50) is an Act of the Parliament of the United Kingdom intended to alter the regulatory framework in which charities operate, partly by amending the Charities Act 1993. The Act was mostly superseded by the Charities Act ...

section 2(2)(k) and appointed herself and her solicitor as trustees of the fund, or just take the money herself.See C Mitchell, ''Hayton and Mitchell's Commentary and Cases on the Law of Trusts and Equitable Remedies'' (13th edn Sweet & Maxwell 2010) 237 and 590

Judgment

Lewison J held the society was not charitable within the legal definition. However, he held that on her husband's death the league ceased to exist, the rules ceased to bind her, and she was absolutely entitled to the assets as the sole surviving member. He held there was no need, in fact, to invoke a new form of co-ownership. Rather the association, while it lasted, was "a species of joint tenancy": The donor transfers property to the members beneficially, but the property is received by the members as group property, as an accretion to an association's funds. This means its use is to be governed by contract, and the contract in almost all cases prevents severance of a member's share.

Notes

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References

* English trusts case law High Court of Justice cases 2008 in case law 2008 in British law

Facts

Judgment

See also

Notes

References