Winding up a cooperative |
You can wind up a cooperative voluntarily, or Fair Trading or the Supreme Court can wind it up.
Involuntary wind up
We can wind up a cooperative if we determine that:
- there are not enough members
- it has not started business within one year of registration or has suspended business for more than six months
- registration was obtained by mistake or fraudulently
- the cooperative exists for an illegal purpose
- the cooperative has wilfully violated the Act or its registered rules (after notice to cease from us)
- the board has failed to ensure rules contain active membership provisions (after notice from us)
- for at least one month, the cooperative has had insufficient directors to form a quorum at a board meeting
- it is in the members´, creditors´ or public´s interest that the cooperative be wound up
- the duration of the cooperative has expired according to the rules.
If we decide to wind up a cooperative, we will appoint a liquidator and issue a winding-up certificate.
Voluntary wind up
You may voluntarily wind up a cooperative only:
- by a creditors´ voluntary wind up
- if the members pass a special resolution to wind up by a special postal ballot.
If members choose to wind up the cooperative, complete and submit Cooperatives Form 16 - Application for approval of draft disclosure statement (PDF, 121 KB) to us for approval before giving notice of the special postal ballot to members.
After the members pass the special resolution, we will send you copies of Cooperatives Form 11 - Application for registration of a special resolution and Cooperatives Form 11a - Statutory declaration in support of a special resolution. Submit them with us to register the special resolution.
Deregistration
When the winding-up process is complete, we deregister the cooperative, which means the cooperative can no longer operate in Queensland.
A cooperative may be deregistered in the same way and in the same circumstances as a company under the Corporations Act 2001.
Related links |
Last reviewed 25/03/2013 |
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