63Winding up by Court

#### 63 Winding up by Court (1) Subject to this section, an Incorporated Aboriginal Association may be wound up under an order of the Court on the petition of: (a) the Association; (b) any creditor, including a contingent or prospective creditor, of the Association; (c) a member of the Association; (d) the judicial manager of the Association; or (e) the Registrar; or of any 2 or more of those parties. (2) A petition under subsection (1) shall specify one or more of the following grounds: (a) the Incorporated Aboriginal Association has, in accordance with its rules, resolved that it be wound up by the Court; (b) the business of the Association was not commenced within 1 year after its incorporation or has been suspended for a continuous period of 1 year; (c) there are fewer than 5 members of the Association; (d) the Association is unable to pay its debts; (e) the members of the Committee of the Association have acted in the affairs of the Association in their own interests rather than in the interests of the members as a whole or in any other manner whatsoever that appears to be unfair or unjust to other members; (g) by reason of the complexity or magnitude of the activities of the Association, it is inappropriate that it continue to be incorporated under this Act; (h) it is just and equitable that the Association be wound up. (3) For the purpose of the consideration by the Court of a petition under subsection (1) on the ground set out in paragraph (2)(d), an Incorporated Aboriginal Association shall be deemed to be unable to pay its debts if: (a) a creditor, by assignment or otherwise, to whom the Association is indebted in a sum exceeding $500: (i) has, by service of a demand upon the public officer, required the Association to pay that sum; and (ii) has, within 3 days of that service, served a copy of that demand upon the Registrar for his or her information; and the Association has, for a period of 28 days after the service referred to in subparagraph (i), neglected to pay that sum or to secure or compound for it to the reasonable satisfaction of the creditor; (b) execution or other process issued on a judgment, decree or order of any court in favour of a creditor of the Association is returned unsatisfied in whole or in part; or (c) it is proved to the satisfaction of the Court, which shall take into account the contingent and prospective liabilities of the Association, that the Association is unable to pay its debts. (4) A member of an Incorporated Aboriginal Association is not entitled to present a petition under subsection (1) on a ground specified in paragraph (2)(a), (b), (d), (g) or (h) unless: (a) there are fewer than 5 members of the Association; or (b) the member has been a member of the Association since the date of its incorporation or has been a member for at least 6 months prior to the presentation of the petition. (6) The Court shall not hear a petition under subsection (1) if it is presented by a contingent or prospective creditor until such security for costs has been given as the Court thinks reasonable and a prima facie case for winding up has been established to the satisfaction of the Court.