New South Wales Consolidated Acts

CO-OPERATIVES ACT 1992 - SECT 343

343 Grounds for winding up, transfer of engagements, appointment of administrator

(1) This section applies to the following actions:

(a) a direction by the Registrar to a co-operative to transfer its engagements under section 314,

(b) the appointment of an administrator of a co-operative under Division 6,

(c) the winding up of a co-operative on a certificate of the Registrar under section 324.

(2) The necessary grounds for the taking of action to which this section applies exist if the Registrar certifies:

(a) that the number of members is reduced to less than the minimum number of persons allowed, as referred to in section 73 (Carrying on business with too few members), or

(b) that the co-operative has not commenced business within 1 year of registration or has suspended business for a period of more than 6 months, or

(c) that the registration of the co-operative has been obtained by mistake or fraud, or

(d) that the co-operative exists for an illegal purpose, or

(e) that the co-operative has wilfully and after notice from the Registrar violated the provisions of this Act or of the regulations or of the rules of the co-operative, or

(f) that the board of the co-operative has, after notice from the Registrar, failed to ensure that the rules of the co-operative contain active membership provisions in accordance with Part 6, or

(g) that there are, and have been for a period of one month immediately before the date of the Registrar’s certificate, insufficient directors of the co-operative to constitute a quorum as provided by the rules of the co-operative, or

(h) following an inquiry pursuant to the provisions of this Act into the affairs of a co-operative or the working and financial condition of a co-operative, that in the interests of members or creditors of the co-operative the action concerned should be taken.

(3) Alternatively, the necessary grounds for the winding up of a co-operative on a certificate of the Registrar exist if the Registrar certifies:

(a) that the period, if any, fixed for the duration of the co-operative by its rules has expired, or

(b) that an event (to be specified in the certificate) has occurred upon the occurrence of which the regulations or the rules provide that the co-operative is to be wound up.

(4) The Registrar is not to certify under this section as to any matter unless the matter has been proved to the Registrar’s satisfaction.