New South Wales Consolidated Acts

FUNERAL FUNDS ACT 1979 - SECT 74A

74A Application of certain winding up provisions of Corporations legislation

(1) The winding up of a funeral contribution fund 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 the provisions of Chapter 5 of the Corporations Act 2001 of the Commonwealth, subject to the following modifications:

(a) section 461 is to be read as if the following paragraph were inserted after section 461 (1) (k):

“, or

(l) in the case of a funeral contribution fund within the meaning of the Funeral Funds Act 1979 of New South Wales, the Director-General within the meaning of that Act has, after holding an inquiry under Division 2 of Part 5 of that Act, reported that the Director-General is of the opinion that the fund cannot pay its debts and should be wound up, or that it is in the interests of the public or of the creditors of the fund or of the contributors to the fund that the fund should be wound up.”

(b) section 462 is to be read as if section 462 (2) (e)-(h) and (2A) and (3) were omitted and the following subsection were inserted after section 462 (2):

“(2A) Without limiting the application of subsection (1) to a funeral contribution fund within the meaning of the Funeral Funds Act 1979 of New South Wales, such a fund may be wound up under an order of the Court on the application of the Director-General within the meaning of that Act or on the application of the Director-General and one or more of the parties specified in the subsection.”

(c) section 553 is to be read as if it were amended to insert “or a direction given under section 61 (2) of the Funeral Funds Act 1979 of New South Wales, is served on a funeral contribution fund” after “wound up” in section 553 (2),

(d) section 556 is to be read as if the following paragraph were inserted after section 556 (1) (h):

“(i) next, any amount that is payable pursuant to a direction given under section 61 (2) of the Funeral Funds Act 1979 of New South Wales served on a funeral contribution fund that is being wound up.”

(e) section 583 is to be read as if the following subparagraph were inserted after section 583 (c) (iii):

“(iv) if the Part 5.7 body is carrying on a contributory funeral benefit business in contravention of the Funeral Funds Act 1979 of New South Wales.”

(f) such other modifications (within the meaning 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.

(2) The regulations may provide for the Australian Securities and Investments Commission to exercise a function under any provision of the Corporations Act 2001 of the Commonwealth that is the subject of the declaration under subsection (1), but only if:

(a) the Australian Securities and Investments Commission is to exercise that function pursuant to an agreement of the kind referred to in section 11 (8) or (9A) (b) of the Australian Securities and Investments Commission Act 2001 of the Commonwealth, and

(b) the Australian Securities and Investments Commission is authorised to exercise that function under section 11 of the Australian Securities and Investments Commission Act 2001 of the Commonwealth.

(3) Section 17 of the Corporations (Ancillary Provisions) Act 2001 has effect in relation to a regulation under subsection (2) as if subsection (1) had expressly made provision for the Australian Securities and Investments Commission to exercise the functions concerned.