''Edwards v Halliwell'' 9502 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 have a minimum set of employment rights, from Acts of Parliament, Regulations, common law and equity (legal concept), equity. ...

and

UK company law British company law regulates corporations formed under the Companies Act 2006. Also governed by the Insolvency Act 1986, the UK Corporate Governance Code, European Union Directive (European Union), Directives and court cases, the company is th ...

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 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'' the union itself is '' prima facie'' 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 that 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'' 9292 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