Details of an attempted coup by disgruntled members of Auckland’s Gold Line Co-Operative Taxi Society Ltd played out in the High Court. In May 2017, Kahlon Singh together with four other Co-op members occupied the Society’s office, posted security guards at the entrance and announced Co-op chairman Manmohan Dua had been deposed, the board dismissed and Mr Singh installed as ‘Acting Manager of the Interim Management Committee’.
That afternoon, it was all over. Following police intervention, Mr Dua was back in control. Mr Singh was subsequently joined by eleven other disgruntled drivers alleging in the High Court that Gold Line directors had failed to follow Co-op rules and were biased against them. The High Court was told none of the disgruntled members is currently working for Gold Line, though they claim to still hold shares in Gold Line. All are now driving for rival companies. In general, they allege Gold Line’s board is effectively preventing them from earning a living with Gold Line as taxi drivers. Specific complaints centre on the manner in which access to Auckland Airport taxi rank is allocated and the circumstances in which some drivers were dismissed from Gold Line.
Gold Line tendered for airport work in the 2016 tender round through a wholly-owned subsidiary: ATS. The major grizzle is that ATS has permitted drivers who are not Gold Line members to operate off the ATS rank, whilst excluding some Gold Line members.
Justice Lang ruled drivers’ remedy was to rely on their constitutional right to vote existing Gold Line directors out of office. He ordered Gold Line hold an annual general meeting of Co-op members no later than March 2019. There has been no annual meeting since 2016. No financial statements have been provided to members for the last three years. The court was told co-op members agreed by a ninety per cent majority at a 2016 special general meeting that no further annual meetings or board elections would be held during the currency of Gold Line’s then three year contract with Auckland Airport. This decision was of no effect, Justice Lang ruled. Gold Line’s registered constitution requires annual meetings. Departing from its constitution requires more than a resolution of members; to be effective the amended rule must be registered and go on the public record.
Justice Lang advised that members currently subject to disciplinary proceedings are entitled to attend and to vote at the March 2019 annual meeting. Members who have failed to pay Co-op levies are to receive notice of the meeting, allowing them to make good any arrears and then attend and vote.
Deep v. Auckland Gold Line Co-Operative Taxi Society Ltd – High Court (22.02.19)
19.048