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committed. A similar question arose in 1867 in Hornby r. Close (P). A society which had a considerable number of rules intended for the maintenance of men on strike was held not to be a Friendly Society within sections 9 and 44 of the Friendly Societies Act, 18 & 19 Vict. c. 63, which gave certain remedies to a friendly society established “for any purpose which is not illegal.” Consequently the justices had no summary jurisdiction in case of fraud or misappropriation of funds by members. The same point came up in Forrer y. Close (9). An information had been laid against an officer of a Friendly Society under sections 24 and 44, 18 & 19 Vict. c. 63. Cockburn, C. J., and Mellor, J., thought that the rules of the society were in effect those of a trade union; the objects being in restraint of trade, they were of opinion that the decision in Hornby v. Close was applicable. Two members of the Court, Hannen and Hayes, J.J., differed from this conclusion. Hannen, J., pointed out that there was no evidence to show that the funds of the Society were applied to the support of any illegal strike. A strike“ may be criminal, as if it be part of a combination for the purpose of injuring or molesting either masters or men ; or it may be simply illegal, as if it be the result of an agreement depriving those engaged in it of their liberty of action, similar to that by which the employers bound themselves in Hilton v. Eckersley, or it may be perfectly innocent, if it be the result of the voluntary combination of the men for the purpose only of benefiting themselves by raising their wages, or for the purpose of compelling the fulfilment of an engagement entered into between employers and employed, or any other lawful purpose.”
In this state of doubt as to the exact position of trade unions, a Royal Commission was appointed to inquire into their organisation; and after the Commission had reported, two Acts, the 34 & 35 Vict. c. 31, and 34 & 35 Vict. c. 32
(P) 36 L. J. M. C. 43; 8 B. & S. 175 ; 10 Cox, C.C. 393.
(9) (1869) 38 L. J. M. C. 132; L.
R. 4 Q. B. 602 ; 20 L. T. N. S. 802 ; 17 W. R. 1129; 10 B. & S. 553.
(the Criminal Law Amendment Act, 1871), were passed. The second of these was repealed by the 38 & 39 Vict. c. 86, s. 17. The first as amended is still in force.
34 & 35 VICT. C. 31 (1871).
An Act to amend the Law relating to Trade Unions. Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:
Preliminary. 1. This Act may be cited as " The Trade Union Act, 1871."
Criminal Provisions. 2. The purposes of any trade union shall not, by reason merely that they are in restraint of trade, be deemed to be unlawful, so as to render any member of such trade union liable to criminal prosecution for conspiracy or otherwise.
3. The purposes of any trade union shall not, by reason merely that they are in restraint of trade, be unlawful so as to render void or voidable any agreement or trust.
4. Nothing in this Act shall enable any Court to entertain any legal proceeding instituted with the object of directly enforcing or recovering damages for the breach of any of the following agreements, namely, (1.) Any agreement between members of a trade union as such, con
cerning the conditions on which any members for the time being of such trade union shall or shall not sell their goods,
transact business, employ, or be employed : (2.) Any agreement for the payment by any person of any subscrip
tion or penalty to a trade union : (3.) Any agreement for the application of the funds of a trade
(r) Rigby v. Connol (1880), 14 Ch. D. 482; 42 L. T. N. S. 139. (A member of a trade union, who was expelled therefrom because, contrary to the rules of the union, he bound his son apprentice in a “foul shop,”
that is a shop in which persons not members of this union were employed, asked for a declaration that he was entitled to participate in the property and benefits of the union, and an injunction restraining the
(a.) To provide benefits to members; or,
not a member of such trade union, in consideration
with the rules or resolutions of such trade union ; 01, (c.) To discharge any fine imposed upon any person by
sentence of a court of justice ; or, (4.) Any agreement made between one trade union and another; or, (5.) Any bond to secure the performance of any of the above
mentioned agreements. But nothing in this section shall be deemed to constitute any of the above-mentioned agreements unlawful. 5. The following Acts, that is to say, (1.) The Friendly Societies Acts, 1855 and 1858, and the Acts
amending the same ; (2.) The Industrial and Provident Societies Act, 1867, and any
Act amending the same ; and (3.) The Companies Acts, 1862 and 1867, shall not apply to any trade union, and the registration of any trade union under any of the said Acts shall be void, and the deposit of the rules of any trade union made under the Friendly Societies Acts, 1855 and 1858, and the Acts amending the same, before the passing of this Act, shall cease to be of any effect.
defendants from excluding him from such participation. Jessel, M. K., declined to interfere (1) because it was not stated that there were any profits; (2) because the application was contrary to s. 4, sub.s. 3; and (3) because many of the stipulations in the rules being in restraint of trade, were illegal apart from the Act. “If nothing in the Act will assist the plaintiff,” said Jessel, M. R., “he must still be in the position of a member of an illegal association coming to a Court of justice to assist lum to enforce his rights under that illegal association. If that is so, it is impossible for me, and I do not think it was ever intended by the Legislature, looking to the terms of the Act of Parliament, to enable the Courts to interfere on behalf of the memo bers of these societies, for the purpose of getting relief inter se with respect to rights and liabilities contrary to the Act."
In a subsequent case decided by Denman, J., Duke v. Littleboy (1880), 43 L. T. N. S. 266 ; 49 L. J. Ch.
802, it was held that the executive of a trade union, the rules of which provided for the ordering of strikes by the executive council, and also for rendering assistance to other bodies on strike, were not entitled to claim an injunction to restrain the otficers of a branch from dividing the balance of the funds, on the ground that it was a proceeding instituted with the object of directly enforcing “an agreement for the application of the funds of a trade union to provide for the benefit of members.” Wolje v. Matthcus (1882), L. R. 21 Ch. D. 194; 30 W. R. 839. (Action by certain officers of a trade union to restrain defendants from amalgamating with other trade unions; held that the action lay.) See also Amalgamated Society of Railway Servants for Scotland v. The Motherwell Branch of the Society (1880). 7 R. 867, where the Court of Session granted an interdict against the defendants parting with the funds in their hands until the rights of the parties could be ascertained ; and Stokes v. Sarulers, Law Times, June 3,1882, p. 85.
Registered Traile Unions, 6. Any seven or more members of a trade union may by subscribing their names to the rules of the union, and otherwise complying with the provisions of this Act with respect to registry, register such trade union under this Act, provided that if any one of the purposes of such trade union be unlawful such registration shall be void.
7. It shall be lawful for any trade union registered under this Act to purchase or take upon lease in the names of the trustees for the time being of such union any land not exceeding one acre, and to sell, exchange, mortgage, or let the same, and no purchaser, assignee, mortgagee, or tenant shall be bound to inquire whether the trustees have authority for any sale, exchange, mortgage, or letting, and the receipt of the trustees shall be a discharge for the money arising therefrom ; and for the purpose of this section every branch of a trade union shall be considered a distinct union.
8. All real and personal estate whatsoever belonging to any trade union registered under this Act shall be vested in the trustees for the time being of the trade union appointed as provided by this Act for the use and benefit of such trade union and the members thereof, and the real or personal estate of any branch of a trade union shall be vested in the trustees of such branch, and be under the control of such trustees, their respective executors or administrators, accorling to their respective claims and interests, and upon the death or removal of any such trustees the same shall vest in the succeeding trustees for the same estate and interest as the former trustees had therein, and subject to the same trusts, without any conveyance or assignment whatsoever, save and except in the case of stocks and securities in the public funds of Great Britain and Ireland, which shall be transferred into the names of such new trustees ; and in all actions, or suits, or indictments, or summary proceedings before any court of summary jurisdiction, touching or concerning any such property, the same shall be stated to be the property of the person or persons for the time being holding the said office of trustee, in their proper names, as trustees of such trade union, without any further description.
9. The trustees of any trade union registered under this Act, or any other officer of such trade union who may be authorised so to do by the rules thereof, are hereby empowered to bring or defend, or cause to be brought or defended, any action, suit, prosecution, or complaint in any court of law or equity, touching or concerning the property, right, or claim to property of the trade union; and shall and may, in all cases concerning the real or personal property of such trade union, sue and be sued, plead and be impleaded, in any court of law or equity, in their proper names, without other description than the title of their office; and no such action, suit, prosecution, or complaint shall be discontinued or shall abate by the death or removal from office of such persons or any
of them, but the same shall and may be proceeded in by their successor or successors as if such death, resignation, or removal had not taken place; and such successors shall pay or receive the like costs as if the action, suit, prosecution, or complaint had been commenced in their names for the benefit of or to be reimbursed from the funds of such trade union, and the summons to be issued to such trustee or other officer may be served by leaving the same at the registered office of the trade union.
10. A trustee of any trade union registered under this Act shall not be liable to make good any deficiency which may arise or happen in the funds of such trade union, but shall be liable only for the moneys which shall be actually received by him on account of such trade union.
11. Every treasurer or other officer of a trade union registered under this Act, at such times as by the rules of such trade union he should render such account as hereinafter mentioned, or upon being required so to do, shall render to the trustees of the trade union, or to the members of such trade union, at a meeting of the trade union, a just and true account of all moneys received and paid by him since he last rendereil the like account, and of the balance then remaining in his hands, and of all bonds or securities of such trade union, which account the said trustees shall cause to be audited by some fit and proper person or persons by them to be appointed ; and such treasurer, if thereunto required, upon the said account being audited, shall forthwith hand over to the said trustees the balance which on such audit appears to be due from him, and shall also, if required, hand over to such trustees all securities and effects, books, papers, and property of the said traile union in his hands or custody ; and if he fail to do so the trustees of the said trade union may sue such treasurer in any competent court for the balance appearing to have been due from him upon the account last rendered by him, and for all the moneys since received by him on account of the said trade union, and for the securities and effects, books, papers, and property, in his hands or custody, leaving him to set off in such action the sums, if any, which he may have since paid on account of the said trade union ; and in such action the said trustees shall be entitled to recover their full costs of suit, to be taxed as between attorney and client.
12. If any officer, member, or other person being or representing himself to be a member of a trade union registered under this Act, or the nominee, executor, administrator, or assignee of a member thereof, or any person whatsoever, by false representation or imposition obtain possession of any moneys, securities, books, papers, or other effects of such trade union, or, having the same in his possession, wilfully withhold or fraudulently misapply the same, or wilfully apply any part of the same to purposes other than those expressed or directed in the rules of such trade union, or any part thereof, the court of summary jurisdiction for the place in which the registered office of the trade union is