SHERIFFDOM OF GRAMPIAN HIGHLAND AND ISLANDS
AT ABERDEEN
A1042/07
JUDGEMENT
of
SHERIFF
PRINCIPAL SIR STEPHEN S T YOUNG Bt QC
in the cause
HAIDER McKENNA AND
OTHERS
Pursuers and Appellants
against
MOHAMMED RAFIQUE AND OTHERS
Defenders and Respondents
|
Act:
Miss Gibson, solicitor, Paull & Williamsons, Aberdeen
Alt:
Miss Swarbrick, solicitor, Anderson Strathern, Edinburgh
Aberdeen: 15th
January 2008
The
sheriff principal, having resumed consideration of the cause,
(1)
allows the appeal and recalls those parts of the interlocutor of the sheriff
dated 1 June 2007 which read respectively "Refuses to grant the interim orders
sought in craves 4(i), (ii), (iii) and (iv) in hoc statu" and "meantime
reserves the question of expenses relating to the hearing on 29 May 2007";
(2)
grants warrant of new to cite the third defender by serving upon him a copy of
the writ as amended and warrant on a period of notice of twenty one days and
ordains him, if he intends to defend the action or make any claim, to lodge a
notice of intention to defend with the sheriff clerk at the Sheriff Clerk's
Office, Castle Street, Aberdeen within the period of notice after such service;
(3)
interdicts ad interim the first
defenders and the second and third defenders, both as representatives of the
first defenders and as individuals from:-
(i) intromitting in any manner or way
whatsoever, either directly or indirectly, with the property and assets that
were vested in Charity No. SC028038 or its appointed representatives as at 20th
May 2007 and, in particular but without prejudice to the foregoing generality,
intromitting in any manner or way with the following bank accounts:-
(a) Bank of Scotland
Account No. 00103268
(b) Bank of Scotland
Account No. 00103276;
(ii) taking any steps of whatsoever
nature, either on their own behalf or through any representative, directly or
indirectly, to intromit with, or transfer the title of, or otherwise burden the
title of the various properties comprising the subjects 164, 166, 168 and 170
Spital, all as more particularly described in Title Nos. ABN14501, ABN15594,
ABN75449 and Sasine Register Search Sheet No. 39008 for the County
of Aberdeen;
(4)
interdicts ad interim the first
defenders and the second, third and fourth defenders, both as representatives
of the first defenders and as individuals from holding themselves out as
entitled to use the name the Aberdeen Mosque and Islamic Centre or to represent
Charity No. SC028038 in any manner of way whatsoever;
(5)
quoad ultra appoints parties to be
heard on all questions of expenses at Aberdeen Sheriff
Court on 30th January 2008 at 9.30 am
under reference to the ensuing note.
Note
Introduction
[1] For some years members of the Muslim
community in Aberdeen have arranged
and held congregational prayers and other Islamic religious activities at a
mosque situated in the Spital, Aberdeen. On 6
August 2000 a number of these persons met together and approved a
new constitution under the following narrative:-
We, the Muslims of Aberdeen have agreed to, and have
adopted, the present constitution and do hereby establish an organisation to be
known as and hereinafter referred to as the Aberdeen Mosque and Islamic Centre.
[2] This constitution contains sixteen separate
articles, the majority of which are further subdivided into a number of
sections. I shall examine these in more
detail shortly. For present purposes it
is necessary to notice article IV which provides for the establishment of a
Board of Trustees who have various responsibilities including holding in trust
the property of the Mosque and Islamic Centre (which I shall refer to hereafter
as "the Mosque Charity"). I dare say
that there are other issues in the background but, from a legal point of view,
the essential question in this case is who are the persons who are now entitled
in terms of the constitution to control this property. In a nutshell, the pursuers say that they, or
at least four of them along with the fourth defender, are while the defenders
(or at least all of them apart from the third defender who has not entered an
appearance as he has not yet been cited) say that they are.
[3] The answer to this question depends upon
the significance in light of the constitution of certain events which took
place during the first half of 2007.
Before rehearsing these events, it will be convenient to set out the
relevant parts of the constitution.
The constitution of the Mosque Charity
[4] Article I provides, inter alia, as follows:
1. The
Aberdeen Mosque and Islamic Centre
is a charitable, non-profitable, non-political organisation.
2. Aims
and Purposes
The
purpose of the Aberdeen Mosque and Islamic Centre is to serve the best
interests of Islam and of the Muslims of Aberdeen and the Aberdeenshire
area. Towards this end, the Aberdeen
Mosque and Islamic Centre shall:
1. Arrange
and hold congregational prayers and Islamic religious activities at appropriate
times;
2. Promote
unity and joint action among the Muslims;
3. Conduct
social, cultural, and religious activities in the best traditions of Islam
3. The
Aberdeen Mosque and Islamic Centre
can co-operate with and support any Islamic organisation that shares the same
aims and purposes.
[5] Article III deals with membership. It provides, inter alia, as follows:
1. The
membership of the Aberdeen Mosque and Islamic Centre shall consist of "members"
of the Muslim Community of Aberdeen and the Aberdeenshire area.
3. All members must abide by the terms of
this constitution.
[6] Article IV deals with the Board of
Trustees. It provides, inter alia, as follows:
1. The
Board of Trustees shall consist of five members of the Aberdeen Mosque
and Islamic Centre and two patrons who could be from outside Aberdeen. The Executive Committee as explained in
Section 3 of this Article, shall nominate all of these members. None of the five Board members shall be a
member of the Executive Committee or an auditor during the tenure of their
office.
3. The
Executive Committee shall nominate all members of the Board of Trustees and the
nomination shall be approved by the General Meeting. In case the General Meeting does not approve
a member nominated for the Board of Trustees by the Executive Committee, the
latter shall nominate a second person.
8. The
Board of Trustees shall be responsible for the following:
1 - Finding ways and means of externally
raising funds for the Mosque and Islamic Centre.
2 - The general management, maintenance,
and growth of the Mosque and Islamic Centre already established.
3 - Co-signing withdrawals of funds in
accordance with Article VI; Section 7
4 - Overseeing the general activities of
the Mosque and Islamic Centre and ensuring that they are within the framework
of the constitution.
5 - Holding in trust the property of the
Mosque and Islamic Centre.
10a. Members
of the Board of Trustees serve voluntarily.
Inactive members of the Board may be asked to resign by the Executive
Committee, with the consent of the rest of the Board of Trustees.
10b. In
case the inactive member refuses to resign, the Executive Committee may decide
to dismiss if 3 out of the 5 trustees and 5 out of the 7 Executive Committee
members agree to it.
10c. If
a Trust Member resigns, dies, leaves the jurisdiction of the Aberdeen Mosque
and Islamic Centre or is dismissed, the Executive Committee shall nominate
another member in the following General Meeting as per section 3 of this
article.
[7] Article V deals with the Executive
Committee. It provides, inter alia, as follows:
1.
The Aberdeen Mosque and Islamic Centre's Executive Committee
shall consist of the selected officers as stated in Section 2, of this article.
2.
The selected officers shall be President,
Vice-President, General Secretary, Treasurer and three other members.
3.
The term of the Mosque Executive Committee shall be one
year.
5. If
more than half of the Executive Committee resigns/vacate their positions, new
members will be chosen by a General Meeting which will be called by the rest of
the Executive Committee or the Board of Trustees. The newly formed Executive Committee shall
carry out the duties until the end of the term.
8.
The President shall be responsible for the following:
1.
The general management of all the activities of the
Aberdeen Mosque and Islamic Centre;
2.
Directing and co-ordinating all the activities so as to
achieve the purposes of the Aberdeen Mosque and Islamic Centre;
3.
Calling and presiding over meetings of the Executive
Committee and General Meetings.
The
remainder of this article goes on to describe in some detail the further duties
of the President and also the respective duties of the Vice-President, General
Secretary, Treasurer and the remaining three members of the Executive
Committee.
[8] Article VI of the constitution deals with
finances and the maintenance of various bank accounts and provides in section 4
(not section 7 as indicated in article IV.8-3) that all cheque withdrawals
shall be co-signed by any two of the President, Vice-President and Treasurer
and by the Chairperson of the Board of Trustees.
[9] Article IX deals with general meetings. It provides, inter alia, as follows:
1a. Annual
General Meeting (AGM)
The Aberdeen Mosque and Islamic Centre shall have its AGM
on the last Sunday in January each year.
A public announcement after Friday together with a written notice of the
meeting shall be made at least two weeks prior to the date of the meeting.
1b. In
this meeting the Executive Committee shall present an ANNUAL financial and
progress report of all its activities.
2.
General Meeting:
The Aberdeen Mosque and Islamic Centre shall have at
least one General Meeting during the year excluding the Annual General Meeting
(AGM). A public announcement after
Friday together with a written notice of the meeting shall be made at least two
weeks prior to the date of the meeting.
3a. Extraordinary
General Meeting
An Extraordinary General Meeting may be called by the
Board of Trustees, the Executive Committee or by a petition signed by 50
members. Such a meeting shall be held
within four weeks of the written petition is presented to the President of the
Executive Committee (sic).
3b. The President of the Executive
Committee or any other person designated by the Committee will chair the
Extraordinary General Meeting.
4. An affirmative vote by 2/3 of the
members present shall be necessary for the adoption of any decision(s).
[10] Article X deals with amendments to the
constitution. It provides, inter alia, as follows:
1.
A proposal for amendment(s) to the constitution shall
be signed by at least 50 members. The
proposal shall be submitted to the President or the General Secretary who shall
post the proposal on the notice board and call a General Meeting within two
months of the receipt of the proposed amendments(s).
2.
An affirmative vote by 2/3 of the members present shall
be necessary for the adoption of any amendment(s).
3.
The quorum requirement for voting on amendments shall
be 50 members of the Aberdeen Mosque and Islamic Centre.
[11] Article XII deals with the selection of the
Executive Committee. It provides, inter alia, as follows:
1.
On the last Sunday in January of each year the
Executive Committee shall present and chair the Annual General Meeting.
2.
A Selection Committee who has been nominated by the
Executive Committee, after consultation with the Board of Trustees, shall conduct
the selection.
7.
The Selection Committee will nominate a minimum of
seven members to form the Executive Committee.
9.
The Selection Committee shall nominate all members of
the Executive Committee, and the General Meeting shall approve the
nomination. In case the General Meeting
does not approve a member nominated by the Selection Committee, the latter
shall nominate a second person.
10. The
newly selected Executive Committee shall assume the charge of the Aberdeen
Mosque and Islamic Centre from the last Sunday of February following the Annual
General Meeting. In the period of
overlap, the new Executive Committee shall work as observer under the old
Executive Committee.
[12] Article XVI deals with the dissolution of the
Aberdeen Mosque and Islamic Centre. It
provides:
If a situation arises which makes the dissolution of the
Aberdeen Mosque and Islamic Centre inevitable, the Board of Trustees shall
handle the process of dissolution. Any
assets, which are left after meeting all liabilities, shall be transferred to
Islamic Relief in Birmingham or any
other trusted charity organisation that the Board of Trustees decides.
The events of March to May 2007
[13] The Mosque Charity has been registered in the
Scottish Charity Register as an unincorporated association and given the number
SC028038. For some reason that is not
readily apparent it has been registered under the name "Islamic Association of
Aberdeen and North East of Scotland".
But it is not in dispute that this is one and the same organisation as
the organisation hitherto known as the Aberdeen Mosque and Islamic Centre and
that its constitution is that to which I have already referred. Nor is it in dispute that this organisation
has certain assets comprising four heritable properties in the Spital, Aberdeen
and funds in two separate accounts with the Bank of Scotland.
[14] The pursuers (being the first three persons
named as such in the initial writ and the two further persons substituted
therein by amendment in terms of the interlocutor dated 28 September 2007) claim that they, or at least
four of them and the fourth defender, are the duly appointed members of the
Board of Trustees of the Mosque Charity.
This is denied by those defenders who have so far entered an appearance
in the action. In future I shall refer
to them collectively as "the present defenders".
[15] The second, third and fourth defenders have
been convened in the action as private individuals. The first defenders are the second and third
defenders and Dr Ruhul Amin who have been convened together as trustees and
representatives of a second charitable organisation which has been registered
as a trust in the Scottish Charity Register with the number SC038010. Somewhat confusingly it has been registered
with the name "The Aberdeen Mosque and Islamic Centre", but it appears from a
letter dated 29 August 2007
to the pursuers' agents that the Office of the Scottish Charity Regulator
("OSCR") intends to issue a direction that this trust (to which I shall refer
hereafter as "the Islamic Charity") should change its name.
[16] Notwithstanding the terms of article IX.1a of
the Mosque Charity's constitution, it is not in dispute that in the year 2006
the Annual General Meeting of the Mosque Charity was not held until 26 March 2006. Seven persons were then appointed to serve as
members of the Executive Committee.
These persons are named in schedule 2 appended to the initial writ. The pursuers maintain that these persons
remained in office as members of the Executive Committee at least until 24 March 2007. The present defenders, on the other hand,
maintain that the period of office of these persons ended on 24 February 2007 (which was the day
before the last Sunday in that month) with the result that all actions by them
thereafter were ultra vires.
[17] As at 1 January 2007 the members of the Board
of Trustees of the Mosque Charity were the second, third and fourth defenders,
Dr Ruhul Amin and Dr Assem Al-Hajj. On 5 March 2007 the latter signed a
letter addressed to the Executive Committee in terms of which, in short, he
submitted his resignation as a member of the Board of Trustees of the Mosque
Charity with immediate effect. On 22
March 2007 Dr Ruhul Amin signed a letter in terms of which he too resigned as a
member of the Board of Trustees with immediate effect. On the same date the second and third
defenders signed a hand-written notice in terms of which they announced their
respective resignations as members of the Board of Trustees.
[18] Dr Ruhul Amin's letter and the notice by the
second and third defenders may or may not have been prompted by an earlier
notice dated 8 March 2007
which had apparently been issued by the members of the Executive Committee
appointed at the meeting on 26 March
2006. For present purposes
the relevant part of this notice read as follows:
The Executive Committee, by reason of loss of confidence
in the present Board of Trustees, withdraws its nomination and support of the
various individuals currently comprising the Board of Trustees and proposes to
put a Resolution that each be requested to resign and, failing resignation,
each be removed from office, at the Extraordinary General Meeting of the
members to be held at Linksfield Academy, Aberdeen on Saturday the 24th March
2007 at 16:00 pm. If the members by
Resolution at that Extraordinary General Meeting support and give effect to
that action the Executive Committee will nominate 5 members in place of those
Trustees resigning/removed from office and if there is competition for any
vacancy the Executive Committee will express a preference for appointment for
the members to consider and vote on.
[19] The Extraordinary General Meeting to which
this notice referred duly took place on 24
March 2007. According to the
minutes of the meeting, it was chaired by the President of the Executive
Committee of the Mosque Charity. In
short, he explained that the meeting had been called to express a vote of no
confidence in the existing Board of Trustees.
Since these persons had already submitted their resignations it was then
proposed that five new trustees should be appointed in place of those who had
resigned and that the newly elected Board of Trustees and the existing
Executive Committee should thereafter work together to amend the constitution
so that in the future there should be a single extended governing body to run
the affairs of the Mosque Charity in place of the Board of Trustees and the
Executive Committee. It was indicated
that the amended constitution would then be submitted for approval at a subsequent
Annual General Meeting when a further four members would be selected and
approved for appointment to the proposed new governing body in addition to the
five new trustees. According to the
minutes it was then proposed that the five persons now named as the pursuers in
the initial writ as amended should be elected as members of the Board of
Trustees. It appears that there were 183
people present and entitled to vote at the meeting and that, after various
contributions from the floor, 153 persons voted in support of (a) the
appointment of the proposed new trustees, (b) the necessary authority being
given to the new Board of Trustees and the existing Executive Committee to work
together to amend the constitution, and (c) the deferment until the next Annual
General Meeting of the selection and appointment of the four additional members
of the proposed new governing body. 20
persons voted against these proposals and there were 10 abstentions.
[20] As already indicated, the present defenders
maintain that the period of office of the Executive Committee appointed on 26 March 2006 ended on 24 February 2007. It follows from this, according to the
present defenders, that all actions by the Executive Committee thereafter were ultra vires including in particular the
issue of the notice dated 8 March 2007
and the convening and conduct of the purported Extraordinary General Meeting
held on 24 March 2007. According to the present defenders, with
effect from 25 February 2007 the management and control of the Mosque Charity
was in the hands of its then Board of Trustees who remain in office as
trustees, the purported appointment as trustees of the pursuers at the meeting
on 24 March 2007 having been invalid.
[21] On 20
April 2007 the second, third and fourth defenders and Dr Ruhul Amin
(but not Dr Assem Al-Hajj) signed a notice withdrawing their respective
resignations as trustees of the Mosque Charity.
The notice is addressed to the President of the Executive Committee and
to the Muslim Community of Aberdeen. It
is not altogether clear why the fourth defender saw fit to sign this notice
given that it appears that he had not previously signed a letter or notice of
resignation as a trustee.
[22] On 4
May 2007 Dr Ruhul Amin and the fourth defender instructed the
agents who now represent them and the second defender to write to the pursuers'
agents to the effect that the new Board of Trustees had no locus to represent
the interests of the Mosque Charity. A
notice dated 11 May 2007
was subsequently distributed to the membership of the Mosque Charity purporting
to convene an Extraordinary General Meeting to be held on 20 May 2007.
It gave no indication at all of the business to be transacted at the
meeting. According to the pursuers, this
notice was not issued on their instructions or with their authority.
[23] The meeting convened for 20 May 2007 duly proceeded and it appears that
the members attending voted by a majority to dissolve the Mosque Charity and to
transfer its assets to the Islamic Charity.
The present defenders' agents have called upon the pursuers to deliver
up the assets of the Mosque Charity accordingly.
The raising of the present action
[24] It is in these circumstances that the
pursuers aver in article 8 of the condescendence that they are reasonably
apprehensive that the first defenders as representatives of the Islamic Charity
and the second, third and fourth defenders as individuals would take steps to
implement the purported resolution passed on 20 May 2007 and to transfer the
assets of the Mosque Charity to the Islamic Charity. The pursuers aver in particular that the
second, third and fourth defenders may, if not otherwise interdicted, execute
appropriate documentation to bring about the transfer of the heritable
properties in the Spital to the Islamic Charity and further that these
defenders may seek to intromit with the bank accounts of the Mosque
Charity. It is also said that the
pursuers are reasonably apprehensive that the defenders will continue to hold
themselves out as entitled to utilise the name, the Aberdeen Mosque and Islamic
Centre, being the name generally used by the Mosque Charity. It is averred that the pursuers' agents wrote
to the defenders on 30 April 2007 seeking delivery of all papers so that the
Board of Trustees elected on 24 March 2007 could begin their work,
that no papers had been delivered and that indeed the response of the defenders
was to call the purported Extraordinary General Meeting which was held on 20
May 2007.
[25] The pursuers now crave the court in terms of
craves 1, 2 and 3 respectively to find and declare that the purported
resolution passed at the meeting on 20 May 2007 to dissolve the Mosque Charity
is of no force and effect, that the pursuers are the correctly constituted
Board of Trustees of the Mosque Charity, that the persons elected at the
meeting on 26 March 2006 are the present Executive Committee of the Mosque
Charity and that the defenders have no power, authority or authorisation to
instruct on behalf of, hold themselves out as representing or intromit with the
assets of the Mosque Charity. In terms
of crave 4 the pursuers seek to have the defenders interdicted from (i)
intromitting with the property and assets of the Mosque Charity, including in
particular the two bank accounts, (ii) taking any steps to intromit with,
transfer the title of, or otherwise burden the various heritable properties in
the Spital held in trust for the Mosque Charity, (iii) holding themselves out
as entitled to use the name "The Aberdeen Mosque and Islamic Centre", and (iv)
holding themselves out as entitled to represent the Mosque Charity in any
manner of way whatsoever.
The sheriff's decision
[26] At the outset of the action the pursuers also
sought interim interdict against the defenders.
Caveats having been lodged on behalf of Dr
Ruhul Amin
and the fourth defender, a hearing duly took place before the sheriff on 29 May 2007. Having heard submissions from the agents for
the pursuers and for the present defenders respectively, the sheriff made
avizandum. On 1 June 2007 he pronounced an interlocutor in terms
of which he refused in hoc statu to
grant interim interdict against the defenders in terms of crave 4. It is this interlocutor which is the subject
of the present appeal.
[27] The sheriff appended to his interlocutor a
note in which he explained why he had refused to grant interim interdict. In short, he appears to have reached the
conclusion that, quite apart from the Islamic Charity, there were two separate
and distinct organisations, namely (1) the registered charity no. SC028038, the
trustees of which were the pursuers, and (2) a voluntary unincorporated
association constituted under the name "The Aberdeen Mosque and Islamic Centre"
which the sheriff referred to as "the Association" and the constitution of
which was the document to which I have referred earlier. It appears that the sheriff would have been
prepared to grant interim interdict in the terms sought by the pursuers had he
been satisfied that they were the trustees of the Association (as he called it)
rather than the registered charity no. SC028038. Subject to one minor refinement to which I
need not refer now, it is not in dispute that the Association and the
registered charity no. SC028038 were, and are, one and the same and the discussion
before the sheriff proceeded on the basis that this was so. The possibility that there might be a
distinction between the two organisations was not a matter which was addressed
before the sheriff, nor was it one that he raised himself at the hearing on 29 May 2007. The sheriff made this plain in the
penultimate paragraph of his note where he wrote, "I am grateful to both agents
for their well presented submissions and I mean them no disrespect if I have
not rehearsed them in any great detail.
However, I have found it necessary to dispose of the matter on grounds
not really touched upon in the submissions".
[28] When the action was raised two of the five
persons named as pursuers in the instance of the initial writ were not among
those who had ostensibly been elected as trustees at the meeting on 24 March 2007. This error has since
been corrected by the amendment which was allowed on 28 September 2007. I can understand why the sheriff may have
been puzzled by this error. At the same time I think that he ought not to have
proceeded to decide the issue upon a ground not argued before him without
giving the parties an opportunity to address him on this ground. This is all the more true given that it is
accepted that he reached the wrong conclusion on this ground. In the circumstances it was agreed at the
hearing of the appeal that, the sheriff having misdirected himself in this way,
the question whether or not interim interdict should be granted in the terms
sought by the pursuers was at large on appeal.
The validity of the written resignations by
the existing trustees.
[29] At the hearing of the appeal two issues in
particular were debated. The first of
these was whether there had been valid resignations by the five trustees who
were admittedly in office until at least the beginning of March 2007. For the pursuers Miss Gibson submitted in
short that all five trustees had validly resigned as trustees of the Mosque
Charity, and that all except the fourth defender had resigned also as trustees
holding the four heritable properties on behalf of the Mosque Charity. She accepted that in the latter capacity the
position of these trustees was subject to the general law of trusts, and
specifically the provisions of the Trusts (Scotland) Act 1921, since these heritable
properties were subject to a quasi-public trust - see Anderson's Trustees v Scott 1914 SC 942 - and that the fourth
defender could not be held to have resigned in this context since, although he
had resigned as a matter of fact, he had not done so in writing. For the present defenders Miss Swarbrick
maintained that any supposed distinction between the manner in which the
trustees might resign as trustees as the Mosque Charity and the manner in which
they might resign as trustees holding the four heritable properties was an
artificial one not supported by authority.
She emphasised that there was only one Board of Trustees of the Mosque
Charity, and she submitted that the manner in which they might resign both as
trustees of the Mosque Charity and as property-holding trustees was governed by
the provisions of the 1921 Act as read with the constitution of the Mosque
Charity. Her position in short was that
the resignations which had admittedly been signed by Dr Ruhul Amin, the second
and third defenders and Dr Assem Al-Hajj were of no effect and that all five
trustees in office at the beginning of March 2007 remained in office on the
date of the Extraordinary General Meeting held on 24 March 2007 with the result
that there were then no vacancies on the Board of Trustees which could lawfully
be filled by the pursuers. It followed,
so it was said, that they had no title or interest to pursue the present
action.
[30] As is observed in Barker & Others:
Charity Law in Scotland
at paragraphs 3.2.9 and 3.3.31, the application of the general law of trusts to
an organisation such as the Mosque Charity which owns property subject to a
quasi-public trust is not wholly clear.
But I am prepared with Miss Swarbrick to assume in the present case that
no distinction is to be drawn between the manner in which the trustees of the
Mosque Charity might resign from the Board of Trustees and the manner in which
they might resign as trustees holding the four heritable properties which are
admittedly subject to a quasi-public trust.
In other words, I accept for present purposes that the provisions of the
general law of trusts apply just as much to the manner in which the trustees
may resign as trustees of the Mosque Charity as to the manner in which they may
resign as property-holding trustees.
[31] It was submitted by Miss Swarbrick, as I
understood her, that section 10c of article IV fell to be read subject to
sections 10a and 10b with the result, so it appeared, that the only
circumstances in which a trustee might resign were if he were asked to resign
by the Executive Committee with the consent of the rest of the Board of
Trustees (see section 10a) or if the Executive Committee decided to dismiss
him, three out of the five trustees and five out of the seven members of the
Executive Committee having agreed to this (see section 10b). It was pointed out that it had not been
averred by the pursuers in the present case that either of these circumstances
applied so that the purported resignations relied on by the pursuers were of no
effect.
[32] In my opinion this submission is
unsound. The reference in section 10c of
article IV to a trustee resigning is unqualified so that a trustee may in my
view resign in any circumstance (subject always to the general law of trusts),
and not merely if he has been asked to resign or dismissed under sections 10a
or 10b respectively. Indeed, it seems to
me that this is no more and no less than what would be expected in any event. It is not difficult to conceive of a wide
variety of circumstances in which a trustee might choose to resign and it would
be strange indeed if, having accepted office as a trustee, he was thereafter
thirled to the office until his death, departure from the jurisdiction of the
Aberdeen Mosque and Islamic Centre or dismissal or until his inactivity as a
trustee had prompted a request under section 10a that he should resign.
[33] Miss Swarbrick drew attention to section 3(a)
of the 1921 Act which provides that, unless the contrary be expressed, all
trusts shall be held to include power to any trustee to resign the office of
trustee. She drew attention too to a
passage in Wilson & Duncan: Trusts, Trustees and Executors (2nd edn) at
paragraph 22-16 where it is said: "It has however been suggested, on the
analogy of certain dicta affecting other statutory powers of trustees, that an
express power of resignation conferred in qualified terms in a trust
originating after the introduction of the statutory power of resignation might
be regarded as equivalent to an express exclusion of that power". Miss Swarbrick submitted that the power of
resignation contained in section 10c of article IV was qualified by the terms
of sections 10a and 10b with the result that the power of a trustee under
section 3(a) of the 1921 Act to resign had been excluded.
[34] In my opinion this submission too is
unsound. As I have just indicated, I do
not consider that the power of a trustee to resign under section 10c is
qualified by the terms of sections 10a and 10b, and it follows that a trustee
of the Mosque Charity has the same power under section 3(a) of the 1921 Act to
resign as any other trustee whose power to resign is unqualified by the terms
of his appointment.
[35] Miss Swarbrick then drew attention to the
terms of section 19 of the 1921 Act which provides:
(1) Subject
to the provisions of subsection (2) of this section, any trustee entitled to
resign his office may do so by minute of the trust entered in the sederunt book
of the trust and signed in such sederunt book by such trustee and by the other
trustee or trustees acting at the time, or he may do so by signing a minute of
resignation in the form of Schedule A to this Act annexed or to the like
effect, and may register the same in the books of council and session, and in
such case he shall be bound to intimate the same to his co-trustee or trustees,
and the resignation shall be held to take effect from and after the date of the
receipt of such intimation, or the last date thereof if more than one, and in
case after inquiry the residence of any trustee to whom intimation should be
given under this provision cannot be found, such intimation shall be sent by
post in a registered letter addressed to the Keeper of the Register of Edictal
Citations.
(2) A sole
trustee desiring to resign his office may apply to the court stating such
desire and praying for the appointment of new trustees or of a judicial factor
to administer the trust, and the court, after intimation to the beneficiaries
under the trust, or such of them as the court may direct, may thereafter
appoint either a judicial factor or new trustees, and if the court appoint new
trustees the court may grant warrant to complete title as provided in the
section of this Act relating to appointment of new trustees by the court.
Miss
Swarbrick submitted that the only two methods by which a trustee might resign
were those set out in section 19(1). She
pointed out, correctly, that the pursuers had not averred that either of these
methods had been adopted by the defenders in this case and it followed once
again, so it was said, that the resignations signed by them were of no effect
so that they remained trustees as at the date of the Extraordinary General
Meeting on 24 March 2007.
[36] Miss Gibson pointed out that section 19(1)
merely provided two methods by which a trustee may resign. She referred too to the use of the words "to
the like effect" later on in the subsection.
She might also have referred to the opening words of section 20 which
read: "Where a trustee entitled to resign his office shall have resigned in
either of the modes provided by the immediately preceding section or
otherwise ...." The emphasis is mine,
and in my opinion it is perfectly clear that, so long as a resignation is in
writing (the necessity for which was conceded by Miss Gibson), it may be valid
and effectual notwithstanding that it does not meet precisely the terms of
section 19(1) of the 1921 Act - see Wilson & Duncan at paragraph
22-31.
[37] Plainly a letter of resignation by a trustee
is not of itself sufficient to relieve him of his responsibilities as a
trustee. So, if one of a number of
trustees signs such a letter and promptly puts it away in a drawer without
drawing it to the attention of his fellow trustees, the letter will be of no
effect as a letter of resignation. To
have such effect it must be drawn to the attention of the other trustees. There may be various means by which this may
be done, and one sees in section 19(1) two such means. But the important point here in my opinion is
that the written resignation by one trustee should as a matter of fact be drawn
by one means or another to the attention of his co-trustees and, provided this
is done, it will be as valid and effectual as if either of the two methods
prescribed in section 19(1) had been followed - and subject always of course to
section 19(2).
[38] It was accepted by Miss
Gibson that there had been no written
resignation by the fourth defender with the result that he at least remained a
trustee in right of the four heritable properties. It is true too that there are no averments to
vouch the proposition that any of the letters of resignation signed by the
other four trustees was intimated in point of fact to any other trustee apart
from its author or authors, as the case may be. Indeed in the fourth defender's
answer 2 there is an express denial that any letters of resignation had been
intimated to him. But Miss Gibson
explained that the pursuers would be in a position to prove as a matter of fact
that each of the five trustees in office at the beginning of March 2007 was
aware before the Extraordinary General Meeting on 24 March 2007 of the resignations of his
co-trustees. That this was so certainly
appears to be consistent with the statement in the notice signed by all four defenders
dated 20 April 2007 in which they speak of having decided "at that time", that
is before the Extraordinary General Meeting on 24 March 2007, to submit their
resignations. It is also consistent with
the reference on page 1 of the minutes of this meeting to Imam Ibrahim
having "informed the community about his role as a mediator in the meeting of
the ex BOT and the MEC in which the ex BOT resigned". In these circumstances, and bearing in mind
that the issue at this stage in the proceedings is whether or not interim
interdict should be granted against the defenders, I am persuaded that enough
has been said by the pursuers to support their contention on a prima facie basis that the letters or
notices of resignation signed by the second and third defenders, Dr Ruhul Amin
and Dr Assem Al-Hajj were valid and effectual with the result that there were
indeed four vacancies on the Board of Trustees by the time of the meeting which
was held on 24 March 2007.
The validity of the appointment of the new
trustees in March 2007
[39] The other issue which was chiefly discussed
at the appeal hearing was whether the resolution passed at this Extraordinary
General Meeting to endorse the appointment of the five pursuers as the new
trustees of the Mosque Charity was valid.
For the pursuers Miss Gibson accepted that, since there were only four
vacancies at the time, only four of the five pursuers could have been validly
appointed to the Board of Trustees, and her position in short was that these
appointments were indeed valid notwithstanding that the fifth appointment was a
nullity. Miss Swarbrick on the other
hand maintained for a variety of reasons that the meeting had not been validly
convened in the first place with the result that there had been no valid
appointment of any of the pursuers as trustees of the Mosque Charity.
The period of office of the Executive
Committee appointed in March 2006
[40] Miss Swarbrick submitted here that the period
of office of the members of the Executive Committee which had been appointed at
the Annual General Meeting on 26 March 2006 had ended on 24 February 2007
(being the day before the last Sunday in February that year) with the result
that all the steps that had been taken by them thereafter had been ultra vires. These included (a) the
calling of the Extraordinary General Meeting to be held on 24 March
2007 by distribution of the notice dated 8 March 2007, (b) the nomination of
the members of the new Board of Trustees for approval at this meeting, and (c)
the conduct of the meeting itself. Miss
Swarbrick accepted that, if objection was to be taken to what had happened at
the Annual General Meeting on 26 March
2006, this should have been taken at the time and she made no
argument about the validity of the outcome of that meeting. She drew attention to section 3 of article V
which provides that the term of the Executive Committee shall be one year. But she submitted that this provision had to
be read along with sections 1 and 10 of article XII and she founded in
particular on the provision in section 10 to the effect that the newly elected
Executive Committee should assume charge from the last Sunday in February. Miss Gibson had earlier drawn attention to
the pursuers' averment in article 3 of the condescendence to the effect that in
the period since August 2000 the requirement in the constitution that the
Annual General Meeting should be held on the last Sunday in January each year
had not been adhered to by the Mosque Charity, and she had submitted under
reference to Abbatt v Treasury Solicitor
1969 1WLR 1575 that the constitution had been amended by acquiescence to remove
this requirement. Miss Swarbrick in
response explained that the present defenders did not accept that in the years
before 2006 the Annual General Meeting had not been held in accordance with
this requirement, and she challenged the proposition that the requirement had
been relaxed by acquiescence. She
submitted that, notwithstanding any irregularity that there might have been in
the past in the fixing of the date of the Annual General Meeting, the
constitution required that this should always be held on the last Sunday in
January, that there should then be one month of overlap before the new
Executive Committee took up office on the last Sunday in February and that each
period of office ran for one year from that date. She submitted that the members of the
Executive Committee were bound to adhere to these provisions and that, if they
did not do so, they had only themselves to blame for the consequences.
[41] In my opinion a fair reading of the
constitution of the Mosque Charity as a whole supports the conclusion that the
members of the Executive Committee appointed at the Annual General Meeting on 26 March 2006 remained in office at
least until the expiry of one year from that date. I say this for several reasons. In the first place section 3 of article V
states quite explicitly that the term of the Executive Committee shall be one year. Secondly, section 10 of article XII does not
say that the term of the Executive Committee shall expire on the last Sunday in
February. What it says is that the newly
selected Executive Committee shall assume charge of the Mosque Charity from the
last Sunday of February following the Annual General Meeting and that in the
period of overlap the new Executive Committee shall work as observer under the
old Executive Committee. Given that the
last Annual General Meeting to be held before February 2007 was the one held in
March 2006, it may be said that the effect of section 10, at least when it is
read in isolation, was that the Executive Committee appointed at the Annual
General Meeting in March 2006 were to assume charge of the Mosque Charity with
effect from 25 February 2007, being the last Sunday in February that year. Understandably neither side proposed that
this was what had happened, and it is plain in my opinion that section 10 of
article XII must be read subject to the requirement in section 1 of article IX
and section 1 of article XII that the Annual General Meeting should be held on
the last Sunday in January in each year and that, if for whatever reason this
does not happen, then section 10 of article XII ceases to have any application.
[42] For present purposes I must assume that the
pursuers are correct in averring that the requirement that the Annual General
Meeting should be held on the last Sunday in January each year had not been
observed since August 2000. If this is
correct, then this must in my view have come about as a result of acquiescence
on the part of the membership of the Mosque Charity, and in particular the then
Board of Trustees whose duty it was to ensure that the constitution was upheld,
in an abandonment of the strict requirement that the Annual General Meeting
should be held each year on the last Sunday in January. Indeed this seems to me to afford the most
obvious explanation why no issue was taken by the present defenders in regard
to the validity of the Annual General Meeting held on 26 March 2006.
In saying this I do not overlook the fact that it appears from the
minutes of the meeting held on 24
March 2007 that there were one or two murmurings of dissent from
among the members present at the meeting.
But, reading these minutes as a whole, I do not get the impression that
any objection was taken to the validity of the meeting as such or the
continuing authority to act of the Executive Committee which had been appointed
on 26 March 2006.
[43] Miss Gibson drew attention to the extensive
responsibilities imposed upon the members of the Executive Committee by article
V (to which might be added the further extensive responsibilities imposed upon
them elsewhere in the constitution), and she submitted that, if the argument
that the powers of the Executive Committee appointed in March 2006 had come to
an end on 24 February 2007 were correct, then there would be no one in place to
discharge all these responsibilities which in turn would create significant
management difficulties for the Mosque Charity.
She submitted that the only sensible conclusion was that the members of
the Executive Committee appointed in March 2006 must have remained in office at
least until March 2007 and so had been in a position to call the Extraordinary
General Meeting that month. Had it been
necessary for me to decide the point, I think that I might well have reached
the conclusion that, given the extensive powers and responsibilities conferred
upon the Executive Committee in terms of the constitution, it must necessarily
be implied that, if for whatever reason a new Executive Committee was not
selected in time to succeed an existing Executive Committee at the expiry of
its period of one year of office, then this period would be extended until a
new Executive Committee had been appointed and was in a position to succeed the
existing committee. If this were not to
happen then the Mosque Charity would be like a rudderless ship, and I cannot
believe that this could have been intended by the membership when the
constitution was adopted in August 2000.
The validity of the notice dated 8 March
2007
[44] Miss Swarbrick also submitted under reference
to Shackleton: The Law and Practice of Meetings (9th edn) at paragraphs 5-02 et
seq that the notice dated 8 March 2007 calling the Extraordinary General
Meeting for 24 March 2007 had been invalid since it had not stated with
sufficient fullness the purpose of the meeting, nor had it indicated clearly by
what authority the meeting was being called.
Miss Swarbrick pointed out that there was no reference in the notice to
the second item on the agenda of the meeting to the effect that the new Board
of Trustees and the Executive Committee should be directed to work together to
prepare a proposed amendment to the constitution to provide for a single
governing body for the Mosque Charity in place of the Board of Trustees and the
Executive Committee. In addition, she
submitted that the Executive Committee had no power to do what was proposed in
the first part of the notice, namely to withdraw its nomination and support of
the then Board of Trustees and to put a resolution to the meeting that each of
these trustees should be requested to resign and, failing resignation, that
each should be removed from office. She
drew attention also to the averment at the beginning of article 3 of the
condescendence to the effect that the meeting had been called for by the
Executive Committee and further by a petition of in excess of 50 members. She pointed out that there was no mention in
the notice of this petition, nor had it been lodged in process, nor had it been
suggested that all the members of the Mosque Charity had been present at
meeting and had waived the defects in the notice.
[45] In response, Miss Gibson submitted that
the notice complied with such formalities as were incumbent on a charitable association. It correctly set out the date, time and place
of the meeting and it stated adequately the purpose of the meeting, at least so
far as the present proceedings were concerned.
The validity or otherwise of matters addressed at the meeting in regard
to the constitution was of no moment in this action. The issue here was whether the election of
the new trustees had been in any way invalidated by want of notice of the true
purpose of the meeting. The ordinary
member of the Mosque Charity reading the notice could not have failed to
appreciate that the purpose of the meeting was to put in place a new Board of
Trustees, and so could have decided whether or not he wished to attend the
meeting and express a view on this. It
mattered not that the notice referred to a proposed resolution that the
existing trustees be asked to resign.
This had been rendered otiose by the date of the meeting itself by the
written resignations which had been signed by these trustees. It was not correct to say that the notice proposed
matters which were ultra vires of the Executive Committee. It was within their power to nominate new
members of the Board of Trustees - see sections 3 and 10c of article IV. In all the circumstances the notice complied
with the required formalities with the result that the meeting which had
followed thereon had been validly convened.
[46] In my opinion the submissions for the
pursuers on this branch of the case are to be preferred. It is true that there was discussion at the
Extraordinary General Meeting on 24 March 2007 of a possible amendment to the
constitution to provide for a single governing body of the Mosque Charity in
place of the existing Board of Trustees and Executive Committee, and it was
resolved that the latter should be authorised to work together to propose a
suitable amendment for approval by the membership at a future Annual General
Meeting. It was also resolved that the
selection and approval of four additional members to be appointed to the new
governing body should be deferred until the next Annual General Meeting. But these two resolutions were no more than
procedural in nature. The only
substantive resolution that was passed at the meeting was the resolution to
appoint the five new trustees in place of the existing trustees, and I do not
consider that any of the members could have been in any doubt, on reading the
notice dated 8 March 2007, that the purpose of the meeting was to replace by
one means or another the existing trustees with five new trustees to be
nominated by the Executive Committee.
This of course was what the majority of the members present at the
meeting sought to do, and it is nothing to the point in my opinion that in the
event the resolution to appoint the new trustees was effectual only to the
extent that it related to four of the five nominees, the fourth defender not
having apparently submitted his resignation in writing. The notice indicated that it was being issued
by the Executive Committee who plainly had the authority to do so, and in my
view it matters not that it did not also mention the petition by 50 or more
members. As for the submission that the
Executive Committee had no power to do what was proposed in the first part of
the notice, it seems to me that, even if this were true, this would not
invalidate the notice itself. At best
for the present defenders it would mean that at the meeting itself a resolution
along the lines proposed in the notice could not validly have been passed. And in the event no such resolution was
proposed. Finally, I do not think that
the pursuers need to resort in this context to any notion of waiver since the
notice that was issued gave adequate notice of the single substantive
resolution that was actually passed at the meeting.
[47] On the assumption that I was against her
on the two principal issues which I have so far considered, I did not
understand Miss Swarbrick to dispute the proposition for the pursuers that
they, or at least four of them, had the necessary title and interest to pursue
the present action and had made out a prima
facie case against the defenders which would justify the grant of interim
interdict against them. In the
circumstances I think that I need say no more than that I am satisfied that,
subject to certain qualifications in the case of the fourth defender, the
proposition is well founded.
The balance of convenience
[48] Turning to the question where the balance
of convenience lay, Miss Swarbrick explained that since the hearing before the
sheriff Dr Ruhul Amin and the second and fourth defenders had all undertaken
that they would not seek to transfer the assets of the Mosque Charity to any
other charity without the consent of OSCR - see section 16 of the Charities and
Trustee Investment (Scotland) Act 2005.
This, said Miss Swarbrick, was sufficient to protect the pursuers'
position as trustees of the Mosque Charity.
As for crave 4(iii), Miss Swarbrick drew attention to sections 10, 11
and 12 of the same Act and explained that the pursuers had already requested
OSCR in terms of section 12(1) to review the names of the Mosque Charity and
the Islamic Charity, and accordingly it was now a matter for OSCR to regulate
the names which appeared on the Scottish Charity Register. In these circumstances, since the pursuers
had an alternative remedy under section 12, the balance of convenience favoured
the defenders in relation to crave 4(iii).
[49] Miss Gibson conceded that she could not
seek interim interdict against the fourth defender in terms of crave 4(ii) on
the basis that he remained a trustee in relation to the four heritable
properties which were subject to a quasi-public trust. She submitted that the funds in the two bank
accounts were not subject to this trust with the result that the fourth
defender, having resigned as a trustee of the Mosque Charity as a matter of
fact, no longer had any right to intromit with these funds. In this I think that she was mistaken. In my opinion these funds are subject to the
same quasi-public trust as are the heritable properties, and it follows that
the pursuers are no more entitled to interdict the fourth defender in terms of
part (i) of crave 4 than they are in terms of part (ii). In any event, given the terms of section 4 of
article VI, I do not think that the fourth defender would be entitled at his
own hand to withdraw funds from either of the bank accounts.
[50] On any view the first defenders as
trustees and representatives of the Islamic Charity and the second and third
defenders as individuals can have no right to intromit with the assets of the
Mosque Charity. So there can be no
prejudice to them in the court granting interim interdict against them in terms
of parts (i) and (ii) of crave 4. It may
be that they have given an undertaking as explained by Miss Swarbrick. But this undertaking is subject to a
condition over which the pursuers have no control, namely the actions of OSCR,
and so is quite different from an unconditional undertaking to the court such
as is commonly given in proceedings of this kind. The prejudice to the pursuers as trustees of
the Mosque Charity if these defenders are free to intromit with its assets is
plain, and in all the circumstances I am satisfied that the balance of
convenience favours the grant of interim interdict against them in terms of
parts (i) and (ii) of crave 4.
[51] It is not in dispute that the Mosque
Charity has for some time been known by the name "The Aberdeen Mosque and
Islamic Centre", and indeed this is the name which appears on the title page of
the Mosque Charity's constitution which dates back to August 2000. In the circumstances I do not see that the
defenders would be prejudiced by being interdicted ad interim in terms of part (iii) of crave 4 from holding
themselves out as entitled to use this name.
In this context the fact that the pursuers have applied to OSCR under
section 12 of the 2005 Act seems to me to be beside the point that as trustees
and representatives of the Mosque Charity they are entitled to look to this
court for protection of the name used for so long by that organisation.
[52] No separate argument having been advanced
by Miss Swarbrick in regard to part (iv) of crave 4, I am satisfied that it is
appropriate to grant interim interdict in terms of this crave. I say this in particular in light of the
practical difficulty, highlighted by Miss Gibson, which would be inherent in
having two bodies of trustees each holding themselves out as entitled to
represent the Mosque Charity.
Conclusion
[53] On the whole matter I am persuaded that
the sheriff was wrong to refuse altogether to grant interim interdict and that
this should now be granted against the various defenders as outlined
above. I have fixed a hearing on
expenses and it will be appropriate then to order the sheriff clerk to fix a
date for an options hearing in terms of rule 31.8 of the Ordinary Cause Rules.
Clearly, if the third defender subsequently lodges a notice of intention to
defend, a further date may have to be fixed.
I am conscious that he has not so far had an opportunity of being heard.
But he will I think be entitled to apply to the sheriff in the usual way for
the recall of the interim interdicts granted against him in the same way as any
other defender against whom an interim interdict has been granted without his
having had an opportunity to be heard.
[54] In addition to the authorities which I
have already mentioned, I was also referred to Scott Robinson: The Law of
Interdict (2nd Edn) at pages 1 and 175, Menzies on Trustees (2nd
Edn) at pages 544/6, Wyse v Abbott
1881 8R 983, Harrington v Sendall
1903 1Ch 921, Gardner v McLintock
1904 11 SLT 654, In re Tobacco Trade
Benevolent Association Charitable Trusts 1958 1 WLR 1113, Wolfe v Richardson 1927 SLT 220, Stair
Memorial Encyclopaedia, Volume 24, paragraph 164, Macphail's Sheriff Court Practice
(1st Edn) at paragraph 4.101, Mackenzie Stuart on Trusts at pages 306/7, Reel v Holder 1979 1 WLR 1252 and Houston v BBC 1995 SLT 1305.