409New body is a continuation of the co-operative

409 New body is a continuation of the co-operative

(1) When a co-operative transfers to a new body, the corporation constituted by the new body is taken to be the same entity as the corporation constituted by the co-operative.

Note. Division 3 also applies to a transfer of incorporation under this Division—see section 412.

(2) If the new body is a company under the Corporations Act, subsection (1) and Division 3 have effect subject to the provisions of section 601BM of that Act.

**Note.** Section 601BM of the Corporations Act provides that the registration of a body as a company under Part 5B.1 of that Act does not:

(a) create a new legal entity; or

(b) affect the body’s existing property, rights or obligations (except as against the members of the body in their capacity as members); or

(c) render defective any legal proceedings by or against the body or its members.

Division 3 Effect of merger or transfer on assets and liabilities