''Edwards v Halliwell''

950 Year 950 ( CML) was a common year starting on Tuesday (link will display the full calendar) of the Julian calendar. Events By place Byzantine Empire * Arab–Byzantine War: A Hamdanid army (30,000 men) led by Sayf al-Dawla raids int ...

2 All ER 1064 is a

UK labour law United Kingdom labour law regulates the relations between workers, employers and trade unions. People at work in the UK can rely upon a minimum charter of employment rights, which are found in Acts of Parliament, Regulations, common law and equit ...

and

UK company law The United Kingdom company law regulates corporations formed under the Companies Act 2006. Also governed by the Insolvency Act 1986, the UK Corporate Governance Code, European Union Directives and court cases, the company is the primary legal ...

case about the internal organisation of a trade union, or a company, and litigation by members to make an executive follow the organisation's internal rules.

Facts

Some members of the

National Union of Vehicle Builders The National Union of Vehicle Builders (NUVB) was a trade union in the United Kingdom. The NUVB represented a mixture of skilled and unskilled workers in the automotive industry. History The union was formed in 1834 as the United Kingdom Societ ...

sued the executive committee for increasing fees. Rule 19 of the union constitution required a ballot and a two-thirds approval level by members. Instead a delegate meeting had purported to allow the increase without a ballot.

Judgment

Jenkins LJ granted the members' application. He held that under the rule in ''

Foss v Harbottle ''Foss v Harbottle'' (1843) 2 Hare 46167 ER 189is a leading English precedent in corporate law. In any action in which a wrong is alleged to have been done to a company, the proper claimant is the company itself. This is known as "the proper pl ...

'' the union itself is ''

prima facie ''Prima facie'' (; ) is a Latin expression meaning ''at first sight'' or ''based on first impression''. The literal translation would be 'at first face' or 'at first appearance', from the feminine forms of ''primus'' ('first') and ''facies'' (' ...

'' the proper plaintiff and if a simple majority can make an action binding, then no case can be brought. But there are exceptions to the rule. First, if the action is ''

ultra vires ('beyond the powers') is a Latin phrase used in law to describe an act which requires legal authority but is done without it. Its opposite, an act done under proper authority, is ('within the powers'). Acts that are may equivalently be termed ...

'' a member may sue. Second, if the wrongdoers are in control of the union's right to sue there is a "fraud on the minority", and an individual member may take up a case. Third, as pointed out by Romer J in '' Cotter v National Union of Seamen''

929 Year 929 ( CMXXIX) was a common year starting on Thursday (link will display the full calendar) of the Julian calendar. Events By place Europe * January 16 – Emir Abd-al-Rahman III of Córdoba proclaims himself caliph and create ...

2 Ch 58 a company should not be able to bypass a special procedure or majority in its own articles. This was relevant here. And fourth, as here, if there is an invasion of a personal right. Here it was a personal right that the members paid a set amount in fees and retain membership as they stood before the purported alterations. Jenkins LJ gave the following reasons.

References

{{Reflist United Kingdom company case law Court of Appeal (England and Wales) cases 1950 in case law 1950 in British law United Kingdom trade union case law Automotive industry in the United Kingdom

Facts

Judgment

See also

References