Certain uses of union funds are considered permissible under section
401(g). For example, a court ruled that money of a subordinate union may
be contributed to a committee formed to challenge the results of a
national union election under title IV when such contributions are
properly authorized by the members in an effort to pursue election
remedies both within and outside the union. In holding such activity to
be outside the prohibitions of section 401(g), although the committee
was formed by defeated candidates and their supporters, the court stated
that ``* * * It does not promote the candidacy of any person if an
election is declared invalid by a court under title IV's procedure
despite the fact that in the rerun election the candidates may be
identical. Neither the winner nor the loser of the disputed election
gains votes by the setting aside of the election. Such action is not a
vote-getting device but merely returns the parties
to their pre-election status; it does not place any candidate into
office.'' \39\
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\39\ Retail Clerks Union, Local 648 v. Retail Clerks International
Association, 299 F.Supp. 1012, 1024 (D.D.C. 1969).
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[38 FR 18324, July 9, 1973, as amended at 63 FR 33780, June 19, 1998]
