75Distribution of assets

75 Distribution of assets

75 Distribution of assets

(1) On the cancellation of an association’s registration under this Division, the association’s assets must be distributed in accordance with a special resolution passed by the association.

(2) Subject to subsection (3), the distribution of the assets of the 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 assets or part of the assets, and

(c) must be approved by the Secretary.

(3) An asset that has been 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 person or body nominated by the department or authority.

(4) A person aggrieved by the operation of this section in relation to an association’s assets may apply to the Supreme Court for an order as to their 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 assets.

(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.

s 75: Subst 2021 No 23, Sch 1.1[8].