455Grounds for appointment of administrator, transfer of engagements or winding up of co-operative

455 Grounds for appointment of administrator, transfer of engagements or winding up of co-operative

455 Grounds for appointment of administrator, transfer of engagements or winding up of co-operative

(1) This section applies to the following actions—

(a) the appointment of an administrator of a co-operative by the Registrar under Division 3 of Part 4.1;

(b) a direction by the Registrar to a co-operative to transfer its engagements under section 401;

(c) the winding up of a co-operative on a certificate of the Registrar under section 443.

(2) The necessary grounds for taking action to which this section applies exist if the Registrar certifies—

(a) the number of members is reduced to less than the minimum number of persons allowed by or under section 119; or

(b) the co-operative has not started business within one year of registration or has suspended business for more than 6 months; or

(c) the registration of the co-operative has been obtained by mistake or fraud; or

(d) the co-operative exists for an illegal purpose; or

(e) the co-operative has wilfully and after notice from the Registrar violated the provisions of this Law or the rules of the co-operative; or

(f) the board of the co-operative has, after notice from the Registrar, failed to ensure the rules of the co-operative contain active membership provisions required under Part 2.6; or

(g) there are, and have been for one month immediately before the date of the Registrar’s certificate, insufficient directors of the co-operative to form a quorum under the rules of the co-operative; or

(h) after an inquiry under this Law into the affairs of a co-operative or the working and financial condition of a co-operative—in the interests of members or creditors of the co-operative or the public, the action concerned should be taken.

(3) Alternatively, the necessary grounds for winding up a co-operative on a certificate of the Registrar exist if the Registrar certifies—

(a) the period (if any) fixed for the duration of the co-operative by its rules has ended; or