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CORPORATIONS (ABORIGINAL AND TORRES STRAIT ISLANDER) ACT 2006 - SECT 526.25 Distribution of surplus assets in winding up by Court

CORPORATIONS (ABORIGINAL AND TORRES STRAIT ISLANDER) ACT 2006 - SECT 526.25

Distribution of surplus assets in winding up by Court

  (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.

  (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).

  (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).

  (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.