455Grounds for appointment of administrator, transfer of

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

Co-operatives (National Uniform Legislation) Act 2015 279 (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 (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 (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 (b) an event (to be stated in the certificate) has occurred on the occurrence of which the National Regulations or the rules provide the co-operative is to be wound up. (4) The Registrar must not certify under this section as to a matter unless the matter has been proved to the Registrar's satisfaction.

Co-operatives (National Uniform Legislation) Act 2015 280 Chapter 5 Participating co-operatives Part 5.1 Introductory 456 What constitutes carrying on business For the purposes of this Chapter and without limiting the definition of carry on business in section 4 in its application to a participating co-operative, a participating co-operative carries on business in this jurisdiction if it: (a) solicits for members in this jurisdiction; or (b) seeks share capital in this jurisdiction, takes deposits in this jurisdiction or offers other securities in the co-operative in this jurisdiction (including the issue of CCUs and debentures). Part 5.2 Participating co-operatives carrying on business in this jurisdiction