450Liability of member to contribute in a winding up if shares forfeited etc

450 Liability of member to contribute in a winding up if shares forfeited etc

(1) If a person’s membership of a co-operative is cancelled under Part 2.6 within 2 years before the start of the winding up of the co-operative, the person is liable on the winding up to contribute to the property of the co-operative the nominal value of shares forfeited under that cancellation (being their nominal value immediately before cancellation).

(2) If, under section 107, a co-operative:

(a) purchases a share of a member in the co-operative; or

(b) repays to a member the whole or part of the amount paid up on a share held by a member;

within 2 years before the start of the winding up of the co-operative, the member or former member is liable on the winding up to contribute to the property of the co-operative the amount paid by the co-operative to the member or former member for the purchase or repayment, together with any amount unpaid on the shares immediately before the purchase or repayment.

(3) If a person contributes to the property of a co-operative under a liability under this section, the amount contributed is, for the purposes of the winding up, to be treated as having been paid up by the person on shares of the co-operative.

(4) The liability of a member or former member of a co-operative under this section is in addition to any other liability of the member or former member to contribute to the property of the co-operative on a winding up of the co-operative.

Part 4.6 Insolvency

451 Application of Corporations Act—insolvent co-operatives

(1) A co-operative is declared to be an applied Corporations legislation matter for the purposes of the Corporations application legislation of this jurisdiction in relation to Part 5.7B of the Corporations Act, subject to the following modifications:

(a) a reference in the provisions to any provision of sections 286–290 of the Corporations Act is to be read as a reference to the appropriate provision of Division 2 of Part 3.3 (sections 265–269) of this Law;

(b) section 588G of the Corporations Act is to be read as if item 2 of the table to section 588G (1A) of that Act were omitted;

(c) section 588G of the Corporations Act is to be read as if item 3 of the table to section 588G (1A) of that Act read as follows:

| “repaying share capital | when the obligation to repay share capital is effective | | receiving the resignation of a member under the rules of the co-operative | when the resignation is effective | | expelling a member | when the expulsion occurs”; |

(d) section 588G of the Corporations Act is to be read as if a reference (however expressed) in items 4 and 5 of the table to section 588G (1A) of that Act to redeemable preference shares were a reference to CCUs;