HERALD LEGAL · 澳法先锋中文

ASCC Election Dispute: Chen v Shaanxi Chamber of Commerce [2021] NSWSC 337

An important reported decision on association elections, members’ voting rights and governance.

Herald Legal · William Gang Wang · New South Wales

General legal information. Past results do not guarantee future outcomes.

Background

Members of the Australian Shaanxi Chamber of Commerce (ASCC) challenged the validity of an election held on 17 August 2019. The dispute concerned whether the election process complied with the incorporated association’s constitution.

Three substantive defects

The original AGM notice did not properly specify the venue; the notices were circulated through a WeChat group that did not include all members and was not an authorised notice method under the constitution; and online or email voting departed from the constitutional requirements for voting at the AGM.

Decision and remedy

The participating defendants ultimately did not contest three defects. Sackar J independently assessed the evidence, found the defects substantive and causing substantial injustice to members, and supported the appointment of a receiver to facilitate a fresh election.

Herald Legal’s role

The judgment expressly identifies Herald Legal as solicitors for the plaintiffs. The decision illustrates experience in litigation over membership participation, election validity and association governance.

Related decisions

In [2020] NSWSC 1719, an application by certain defendants to dismiss or permanently stay the proceedings for abuse of process was dismissed. In the subsequent costs decision [2020] NSWSC 1896, the defendants were ordered to pay the plaintiffs’ costs of that motion on the ordinary basis. These procedural decisions should be distinguished from the 2021 election decision.

Legal significance

An association must follow its own constitution. WeChat communications do not automatically satisfy formal notice requirements. A court considers whether election irregularities substantively interfere with eligible members’ participation.

Published judgments in the series

Association Law Services · William Gang Wang profile · Contact

Guide to Association Election Procedures

A practical analysis of the ASCC judgment covering AGM notices, WeChat service, online voting, member participation and court remedies.

Read the association election procedure guide