Hashim Yeop Sani SCJ:

The basic issue in this appeal is the issue of illegality and the question to be answered is what is the proper interpretation of s. 12(3) and s. 41(c) of the Societies Act 1966 ("the Act") and how is it to be applied to the agreed facts.

Among the agreed facts the most important for the purpose of determining the appeal is fact (d) at p. 15 and recorded in the grounds of judgment of the learned Judge as follows:

There were 30 unapproved Branches in 4 Divisions which held their Annual General Meetings and elected delegates or sent observers to the Division Conferences which in turn elected delegates to the General Assembly on 24 April 1987.

We will first deal with the interpretation and effect of s. 12(3) and s. 41(c) of the Act. 12(3) reads as follows:

Where a registered society established a branch without the prior approval of the Registrar such registered society and the branch so established shall be deemed to be unlawful societies:

Provided that a branch of a registered society established and in existence immediately before the commencement of this Act shall not be deemed to be an unlawful society if within six months from the commencement of t