Tasmanian Numbered Acts

COOPERATIVES ACT 1999 (NO. 85 OF 1999) - SECT 339

339. Grounds for winding-up, transfer of engagements, appointment of administrator

      (1) This section applies to the following actions:

(a) a direction by the Commissioner to a cooperative to transfer its engagements under section 307;

(b) the appointment of an administrator of a cooperative under Division 5;

(c) the winding-up of a cooperative on a certificate of the Commissioner under section 317.

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

(a) that the number of members is reduced to less than the minimum number of persons allowed, as referred to in section 67; or

(b) that the cooperative has not commenced business within one year of registration or has suspended business for a period of more 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 wilfully and after notice from the Commissioner violated the provisions of this Act or of the rules of the cooperative; or

(f) that the board of the cooperative has, after notice from the Commissioner, 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 a period of one month immediately before the date of the Commissioner's certificate, insufficient directors of the cooperative to constitute a quorum as provided by the rules of the cooperative; or

(h) following an inquiry pursuant to 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 concerned should be taken.

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

(a) that the period, if any, fixed for the duration of the cooperative by its rules has expired; or

(b) that an event (to be specified in the certificate) has occurred on the occurrence of which the regulations or the rules provide that the cooperative is to be wound-up.

      (4) The Commissioner must not certify under this section as to any matter unless the matter has been proved to the Commissioner's satisfaction.