The appellant, a permanent golfing member of a share capital social club, sought to transfer to a social membership category while retaining his Class B voting share.
The club's board adopted a policy requiring members transferring out of permanent golfing categories to resign, thereby cancelling their voting shares, and reapply.
The appellant argued this policy unlawfully varied his share rights under the Corporations Act.
The court held that the policy did not vary share rights, as the appellant could keep his share by remaining in his current category, and the policy was a reasonable exercise of the board's authority.
The court also determined that the appeal properly lay to the Divisional Court, reconstituting itself to dismiss the appeal.
