VOLUNTARY ASSOCIATIONS 1. Definition.—A voluntary association has been defined as "a body of persons acting together, with out a charter, but upon the methods and forms used by incorporated bodies, for the prosecution of some com mon enterprise." 1 Some other terms used to desig nate these associations are society lodcre fraternity, union, club, g,uild and league. The chief distinctions between voluntary associations and other forms of co operative organizations may be pointed out here, al tho' one can appreciate the less important differences only after studying the methods of organization and management of the various types.
These associations are distinguished from partner ships, in that not every member is a general agent, and the death of a member does not dissolve the associa tion. An as.sociation differs from a, corporation in that it has no charter from the state; moreover, it is not an "artificial" person like the corporation, and cannot hold property in its own name. Finally, it differs from a joint stock company chiefly in the fact that membership is not transferable.
2. Importance of associations.—One usually thinks of these societies or associations as including groups formed for social purposes only, such as a girls' friendly society, a Freeniason lodge, a Greek-letter society, or a club. But many institutions that are really associations play an important part in present day business life. Chief among them are the stock and produce exchanges and the press associations.' Every student of history knows the important place the guilds have held in the economic development of modern Europe. The co-operative society, described later, and the association of the beneficiaries under a business trust have all the legal attributes of volun tary associations.
3. Constitution and by-lates.—An association may adopt a constitution and by-laws. These will be bind ing on all members. They constitute the contract that binds the associates together. Ordinarily, if there is any conflict between these two sets of rules, the con stitution will govern.
in these associations is not transferable. Moreover, the courts will not compel the admission of ineligible applicants. times a condition of membership is the acquisition of unforfeited certificate of membership from a tiring member or from the estate of' a deceased ber. Thus "seats" on the exchanges are bought and sold. If the purchaser of such a seat cannot comply with the other requirements of membership, one of which is to obtain the approval of the board of gov ernors, his only remedy is to resell the seat.
5. Termination of membership.—Since members of associations are liable 'as partners, and since their rights are valuable,' it is important to understand the principles upon which the relation may be termi nated. Ordinarily the constitution or tbe by-laws will govern. Sometimes special acts are mentioned as just causes for expulsion, and frequently power is given the directors to expel for "misconduct." Gen erally the courts will refrain from reviewing the de cisions of a board, but if a case entirely lacks any evi dence that would justify the directors in coming to a decision, the courts will protect the accused member. It is always wise for associations to give their members due notice of any charges against them, in order to afford them an opportunity to defend themselves, as well as for the sake of conducting all proceedings in a businesslike way.
Sometimes the constitution and by-laws provide a definite method of withdrawal. In such a case, unless a member who desires to withdraw adopts this method, Ile may be held liable for all the obligations of mcm bership.
6. 1?ights and liabilities of associations.—These associations have the right to adopt a title and to re strain others from using that title without authoriza tion. They also have the privilege of adopting con stitutions and by-laws that are not contrary to public policy.