Australian Capital Territory Consolidated Acts

COOPERATIVES ACT 2002 - SECT 338A

    (1)     This section applies to the following actions:

        (a)     a direction by the registrar to a cooperative to transfer its engagements under section 305;

        (b)     the appointment of an administrator of a cooperative under division 12.5;

        (c)     the winding-up of a cooperative on a certificate of the registrar under section 315.

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

        (a)     that the number of members is reduced to less than the minimum number of people allowed, as mentioned in section 69; or

        (b)     that the cooperative has not begun business within 1 year of registration or has suspended business for longer than 6 months; or

        (c)     that the registration of the cooperative has been obtained by mistake or fraud; or

        (d)     that the cooperative exists for an illegal purpose; or

        (e)     that the cooperative has intentionally, and after notice from the registrar, breached a provision of this Act or the rules of the cooperative; or

        (f)     that the board of the cooperative has, after notice from the registrar, failed to ensure that the rules of the cooperative contain active membership provisions in accordance with part 6; or

        (g)     that there are, and have been for 1 month immediately before the date of the registrar's certificate, insufficient directors of the cooperative to form a quorum as provided under the rules of the cooperative; or

        (h)     following an inquiry under the provisions of this Act into the affairs of a cooperative or the working and financial condition of a cooperative, that in the interests of members or creditors of the cooperative or the public the action should be taken.

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

        (a)     that the period (if any) fixed under the cooperative's rules for its duration has ended; or

        (b)     that a winding-up event stated in the certificate has happened.

    (4)     In this section:

"winding-up event" means an event on the happening of which the regulations or the cooperative's rules provide that the cooperative must be wound up.