Corporations (Aboriginal and Torres Strait Islander) Act 2006

CHAPTER 11 - EXTERNAL ADMINISTRATION  

PART 11-5 - WINDING UP  

Division 526 - Winding up  

SECTION 526-25   DISTRIBUTION OF SURPLUS ASSETS IN WINDING UP BY COURT  

526-25(1)    
This section applies if:

(a)    surplus assets remain on the winding up of an Aboriginal and Torres Strait Islander corporation; and

(b)    the winding up is a winding up by the Court.

526-25(2)    
If the corporation ' s constitution includes provisions for the distribution of the surplus assets of the corporation in the event of the corporation ' s being wound up, the Court or the liquidator must distribute those assets in accordance with those provisions. This subsection has effect subject to subsection (4) .

Note:

The liquidator may have powers in relation to the distribution of the surplus under section 488 of the Corporations Act (as applied by section 526-35 of this Act).

526-25(3)    
If:

(a)    the corporation ' s constitution does not include provisions for the distribution of the surplus assets of the corporation in the event of the corporation ' s being wound up; and

(b)    the members of the corporation pass a special resolution relating to the distribution of the surplus assets of the corporation;

the Court or the liquidator must distribute those assets in accordance with that special resolution. This subsection has effect subject to subsection (4) .

Note:

The liquidator may have powers in relation to the distribution of the surplus under section 488 of the Corporations Act (as applied by section 526-35 of this Act).

526-25(4)    
If:

(a)    a Judge of the Court considers that a distribution of the surplus assets of the corporation in accordance with:

(i) the provisions of the corporation ' s constitution in accordance with subsection (2) ; or

(ii) a special resolution in accordance with subsection (3) ;

would not be just; or

(b)    no such provisions exist and such a special resolution has not been passed;

the Judge must make such orders for the distribution of those assets as, having regard to the objects of the corporation, he or she considers just.