132Distribution of surplus assets

132 Distribution of surplus assets (1) This section applies if an incorporated association has been wound up under this Act. (2) Subject to this section and any court order, the surplus assets of the association must be distributed in accordance with— (a) the rules of the association; or (b) if there are no valid rules governing the distribution of its surplus assets—a special resolution of the association. (3) An asset or part of an asset of the association consisting of property supplied by a government department, public authority or Council, including the unexpended portion of a grant, must be returned to— (a) the department, authority or Council that supplied the property; or (b) a body nominated by that department, authority or Council. (4) Subject to subsection (5), the association must not distribute a surplus asset to— (a) any member or former member of the association; or (b) any person to be held on trust for any member or former member of the association. (5) The surplus assets of the association may be distributed to a member or former member if— (a) the member or former member is a body corporate or an association (whether incorporated or not) and the Registrar is satisfied that— (i) at the time of the distribution, the body corporate or association referred to in paragraph (a) is prevented by its rules or otherwise from distributing the surplus assets to its members; and (ii) the distribution is not contrary to this Act or the regulations; or (b) the member or former member is a trustee who holds, or held, membership of the association on behalf of a trust and the Registrar is satisfied that— (i) at the time of the distribution, the trustee is prevented by the terms of the trust or otherwise from distributing the surplus assets to the beneficiaries of the trust; and (ii) the distribution is not contrary to this Act or the regulations. (6) This section applies subject to any trust affecting all or any of the assets of the association.