65Distribution of surplus property

#### 65 Distribution of surplus property 65 Distribution of surplus property > > (1) In a winding up of an association, the surplus property of the association must be distributed in accordance with the following— > > > > > (a) if the constitution of the association contains provisions addressing the distribution of surplus property—the constitution of the association, > > > > > (b) if paragraph (a) does not apply—a special resolution passed by the association, > > > > > (c) if paragraph (a) does not apply and the association has not or cannot pass a special resolution—a direction of the Secretary. > > > (2) Subject to subsection (3), the distribution of surplus property of an association— > > > > > (a) must not be made to, or for the benefit of— > > > > > > > (i) a member or former member of the association, or > > > > > > > (ii) a person to be held on trust for a member or former member of the association, and > > > > > (b) is subject to any trust affecting the property or a part of the property, and > > > > > (c) must be approved by the Secretary unless the property is distributed in accordance with a direction of the Secretary. > > > (3) Surplus property that is property supplied by a government department or public authority, including an unexpended portion of a grant, if any, must be returned— > > > > > (a) to the department or authority that supplied it, or > > > > > (b) to a body nominated by the department or authority. > > > (4) A person aggrieved by the operation of this section in relation to an association’s surplus property may apply to the Supreme Court for an order as to its disposal. > > > (5) The Supreme Court may deal with an application by making the orders it thinks fit in relation to the disposal of the association’s surplus property. > > > (6) In this section— > > > > member or former member does not include a member or former member who is— > > > > > (a) an entity or organisation, whether incorporated or unincorporated, and > > > > > (b) at the time of the distribution, prohibited from distributing property to its members. > > > > surplus property means the property of an association remaining after satisfaction of the debts and liabilities of the association and the costs, charges and expenses of the winding up of the association. > > **s 65:** Subst 2021 No 23, Sch 1.1\[7\].