Conservative Central Office has upheld allegations of misconduct against the officers of Hendon Conservative Association and expelled it from the national party.

In an unprecedented decision, the party's ruling body announced on Friday that it "was minded" to disaffiliate the association, although officers have 28 days to appeal.

Members who hope to establish a new Hendon association are horrified at the old administration's threat to retain all property and funds. But a Central Office spokeswoman suggested that the national party would take steps to ensure the assets were given to the new association. She said: "The National Union will rule on what happens to the money and property. We understand that local parties are autonomous but at the same time there are rules about how they are run. There is so much animosity and allegations on both sides that it will not be left in the hands of the association."

The party's ruling body, the National Union, met on December 9 to hear evidence from seven witnesses who alleged that:

o individuals not entitled to vote were admitted to crucial association meetings

o officers were elected by a show of hands, not a secret ballot

o £19,000 from a ring-fenced property fund was spent without approval.

The hearing was prompted by a 60-signature petition sent to party chairman Lord Parkinson by members opposed to the way local chairman George Ward was running the association.

They were concerned that many long-serving activists had been ousted from positions of influence and replaced by the employees and family of Mr Ward.

Mr Ward, 64, of Holmdene Avenue, Mill Hill, the multi-millionaire owner of photo developers Bonusprint, and his officers refused to attend the hearing saying it was a "kangaroo court".

Mr Ward has pledged to fight the Central Office decision through the courts and will not recognise any new association. He said: "Our association will carry on as normal. We own the cash, we own the premises and have the members. The vast majority support the current association."

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