Victorian Consolidated Legislation

Co-operative Housing Societies Act 1958 - SECT 49A

Appointment of administrator

49A. Appointment of administrator



(1) The registrar, with the approval of the Minister, may appoint an
administrator to conduct the affairs of a society as provided in this section.

(2) The registrar must not appoint an administrator unless-

   (a)  the registrar has certified that any one or more of the events
        specified in subsection (17) has occurred; or

   (b)  the registrar is satisfied that it is in the interests of the public
        or of members or creditors of the society that the affairs of the
        society should be conducted by an administrator.

(3) The registrar must not certify under subsection (2) unless the ground or
matter to be certified has been proved to his or her satisfaction.

(4) Upon the appointment of an administrator of a society-

   (a)  the directors of the society cease to hold office; and

   (b)  all contracts of employment with, or for the provision of secretarial
        or administrative services to, the society are voidable by the
        administrator.

(5) An administrator of a society-

   (a)  has the powers, authorities, duties and functions of the board of
        directors of the society including, without limiting the generality of
        the foregoing, the board of directors' powers of delegation; and

   (b)  must observe any relevant law, regulation or industrial award in
        respect of the giving of notice and the provision of termination or
        other entitlements to employees.

(6) Except as provided by subsection (10), no appointment or election of a
director of the society may be made while the administrator is in office.

(7) An administrator holds office until his or her appointment is revoked.

(8) Upon revocation of his or her appointment, an administrator must prepare
and submit forthwith a report to the registrar showing how the administration
was conducted and, for that purpose, an administrator has access to the
records and documents of the society.

(9) Upon completion of the report and accounting fully in respect of the
administration to the satisfaction of the registrar, the administrator is
released from any further liability to account in respect of the
administration, other than on account of fraud or dishonesty.

(10) Before revoking the appointment of an administrator of a society, the
registrar must-

   (a)  appoint another administrator; or

   (b)  ensure that directors of the society have been elected in accordance
        with the rules, at a meeting convened by the administrator in
        accordance with those rules; or

   (c)  appoint directors of the society; or

   (d)  appoint a liquidator of the society.

(11) Directors elected under subsection (10)(b) or appointed under subsection
(10)(c)-

   (a)  take office upon revocation of the appointment of the administrator;
        and

   (b)  in the case of appointed directors, hold office until the annual
        general meeting of the society that next succeeds revocation of that
        appointment.

(12) The expenses of and incidental to the conduct of the affairs of a society
by an administrator are payable from the funds of the society.

(13) The remuneration of an administrator who is not a servant of the Crown is
an expense referred to in subsection (12) and is to be fixed by the registrar.

(14) If an administrator appointed under this section is a servant of the
Crown, the reimbursement of the Crown in an amount certified by the registrar
in respect of the remuneration of its servant is an expense referred to in
subsection (12) and is recoverable as a debt due to the Crown.

(15) Without prejudice to his or her ability to account under subsection (9),
an administrator of a society is not liable for any loss sustained by the
society or by any other person during his or her term of office in respect of
any act or omission by him or her in the management of the society or
otherwise in relation to the society unless the loss was due to his or her-

   (a)  misconduct or gross negligence; or

   (b)  his or her failure to comply with this Act or the rules to the extent
        the rules are not inconsistent with this Act.

(16) The registrar is not liable for any loss sustained by a society or by any
other person during the term of office of an administrator, in respect of any
act or omission of the administrator in the management of the society or
otherwise in relation to his or her conduct as administrator, whether or not
the administrator is so liable.

(17) The events referred to in subsection (2)(a) are as follows:

   (a)  That the number of members of a society is reduced to less than 3;

   (b)  That the society has not commenced business within a year of
        registration or has suspended business for a period of more than six
        months;

   (c)  That the period, if any, fixed for the duration of the society by its
        rules has expired;

   (d)  That an event to be specified in the certificate has occurred upon the
        occurrence of which the regulations or the rules provide that the
        society is to be wound up;

   (e)  That the society has, after notice by the registrar of any breach of,
        or non-compliance with, this Act or the rules failed, within the time
        specified in the notice, to remedy the breach or has committed any
        breach of a kind specified in the notice;

   (f)  That there are, and have been for a period of one month immediately
        before the date of the certificate, insufficient directors of the
        society to constitute a quorum as provided by the rules.