ASSOCIATIONS INCORPORATION ACT 1985 - SECT 43
ASSOCIATIONS INCORPORATION ACT 1985 - SECT 43
43—Distribution of assets upon winding up
(1) Subject to
subsection (1a), it is not lawful to distribute among members, former
members or associates of members or former members of an
incorporated association any surplus assets available for distribution at the
completion of the winding up of the association under this Part.
(1a) The surplus
assets of an incorporated association may, with the consent of the Commission,
be distributed among the members of the association if each of the members of
the association is also an incorporated association that has identical or
similar aims and objects.
(2) Subject to this
section and any order of the Supreme Court, the surplus assets of an
incorporated association are, on a winding up of the association, to be
distributed in accordance with—
(a) the
rules of the association; or
(b)
where there are no valid rules of the association governing distribution of
the surplus assets—a special resolution of the association.
(3) The Supreme Court
may, on the application of the Commission, a liquidator or a member of an
incorporated association, determine how surplus assets of the association are
to be distributed on a winding up.
(4) The Court must, in
determining how the surplus assets of an association are to be distributed,
have regard to the objects of the association and any relevant provisions of
the rules of the association.
(5) In this
section—
"surplus assets", in relation to the winding up of an
incorporated association, means those assets that remain after the liabilities
of the association have been discharged and the costs and expenses of the
winding up have been paid.