New South Wales Consolidated Acts

ASSOCIATIONS INCORPORATION ACT 1984 - SECT 51

51 Winding up by the Court

(1) The Court may order the winding up of an incorporated association if:

(a) the incorporated association has by special resolution resolved that it be wound up by the Court,

(b) the incorporated association does not commence its operations within 1 year after the date of its incorporation under this Act or suspends its operations for a whole year,

(c) the incorporated association is unable to pay its debts,

(d) the incorporated association has traded or secured pecuniary gain for its members,

(e) the incorporated association has, as trustee, traded or secured pecuniary gain for members of the incorporated association,

(f) the incorporated association has engaged in activities inconsistent with its statement of objects,

(g) the committee of the incorporated association has acted in affairs of the association in the interests of the committee or of members of the committee rather than in accordance with the statement of objects of the association, or in any other manner whatever that appears to the Court to be unfair or unjust to members of the association,

(h) the Minister has by notice under section 56 directed the incorporated association to become registered as a company under the Corporations Act 2001 of the Commonwealth or to become registered as a society under the Co-operatives Act 1992 and the association has not become so registered within the time fixed by, and in accordance with any conditions specified in, the notice,

(i) the incorporated association would, if not incorporated under this Act, not be eligible to be so incorporated, or

(j) the Court is of the opinion that it is just and equitable that the incorporated association be wound up.

(2) An application to the Court for the winding up of an incorporated association may be made by the incorporated association or by a member or creditor of the incorporated association or by the Director-General.

(3) The winding up of an incorporated association (other than by a voluntary winding up) by the Court in New South Wales is declared to be an applied Corporations legislation matter for the purposes of Part 3 of the Corporations (Ancillary Provisions) Act 2001 in relation to Part 5.7 (Winding up bodies other than companies) of the Corporations Act 2001 of the Commonwealth, subject to the following modifications:

(a) the modifications referred to in section 52,

(b) the provisions of the Part are to be read as if that Part extended to the winding up of the affairs of an incorporated association in New South Wales,

(c) such other modifications (within the meaning of Part 3 of the Corporations (Ancillary Provisions) Act 2001 ) as may be prescribed by the regulations.

Note: Part 3 of the Corporations (Ancillary Provisions) Act 2001 provides for the application of provisions of the Corporations Act 2001 and Part 3 of the Australian Securities and Investments Commission Act 2001 of the Commonwealth as laws of the State in respect of any matter declared by a law of the State (whether with or without modification) to be an applied Corporations legislation matter for the purposes of that Part in relation to those Commonwealth provisions. Section 14 (2) of the Corporations (Ancillary Provisions) Act 2001 ensures that a declaration made for the purposes of Part 3 of that Act only operates to apply a provision of the Corporations legislation to a matter as a law of the State if that provision does not already apply to the matter as a law of the Commonwealth. If a provision referred to in a declaration already applies as a law of the Commonwealth, nothing in the declaration will affect its continued operation as a law of the Commonwealth.