Corporations (Aboriginal and Torres Strait Islander) Act 2006

CHAPTER 11 - EXTERNAL ADMINISTRATION  

PART 11-5 - WINDING UP  

Division 526 - Winding up  

SECTION 526-30   DISTRIBUTION OF SURPLUS ASSETS IN VOLUNTARY WINDING UP  

526-30(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 voluntary winding up.

526-30(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 liquidator must distribute those assets in accordance with those provisions. This subsection has effect subject to subsection (5) .

526-30(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 liquidator must distribute those assets in accordance with that special resolution. This subsection has effect subject to subsection (5) .

526-30(4)    
If:

(a)    the liquidator 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 liquidator must apply to a Judge of the Court for an order under subsection (5)

526-30(5)    
If:

(a)    the Judge 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 (1) ; or

(ii) a special resolution in accordance with subsection (2) ;

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.