Natural Justice, Members, and the Not-For-Profit Organization:

Summary

In recent years, a number of cases have emerged that have considered the application of natural justice rules to the decisions of not-for-profit organizations. The emergence of these cases is not surprising considering the ever increasing number of membership-based organizations across the country, ranging from social and sporting clubs to hospitals, schools, religious organizations, professional associations, and licensing bodies. At one time or another, most Canadians will become a member of one of these types of organizations. Invariably these organizations develop admission criteria and, in some cases, discipline rules and procedures in their by-laws, constitution or policies. These rules may be based on the requirements found in a statute, they may develop by convention, or they may reflect an organization's desire to create an administrative scheme to order its affairs. While some organizations have very little by way of written rules, preferring instead to include only the most minimal requirements imposed by an incorporating statute, others have comprehensive procedures and operating policies which apply. This article focuses on the application of natural justice rules to not-for-profit organizations' decisions, particularly those that relate to expulsion, discipline, and suspension of members. It examines when courts will intervene to control decisions to refuse to admit persons as members and concludes with some observations on by-law drafting dealing with the issues raised.