Constitution of Urabba Parks/Section 94

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Chapter 4 >>Part 1 >>Division 4 >>Subdivision B >>Section 94

Distribution of surplus[edit | edit source]

(1)  In winding-up, the liquidator is to have as much regard as practicable to the legal rights of the membership in relation to the making of charity distributions.

(2)  Any member whose legal rights in respect of charity distribution entitlements are not fully satisfied shall be allocated to a giving pool, for the purposes of division among eligible charities as chosen by those members by further charity distributions.

(3)  In a giving pool constituted under this section:

(a)  the liquidator may, with the sanction of a special resolution of the members comprising the giving pool, make charity distributions in respect of any or all of those members;
(b)  for any amount not distributed under paragraph (a) the liquidator may, with the sanction of a preferential vote of the members comprising the giving pool and whose legal rights are not fully satisfied by charity distributions made under that paragraph, make charity distributions in respect of all of those members; and
(c)  unless otherwise agreed by a member, in no circumstances shall a member be required to nominate for charity distribution securities of which there is a liability.

Relevant note from the Explanatory Memorandum[edit | edit source]

241. Subsection (1) provides that in winding-up, the liquidator is to have as much regard as practicable to the legal rights of the membership in relation to the making of charity distributions. Subsection (2) provides for the formation of giving pools that are constituted upon winding up where the legal rights in respect of membership cannot be satisfied. For example, a giving pool could be constituted under this section because there could be non-cash assets left in the associations and Consolidated Revenue Fund that need to be divided up among charities chosen by members. Under subsection (3), members shall have a preferential vote on the distribution of the assets remaining in the giving pool following a special resolution on the division of these assets. Unless otherwise agreed, a member is not required to accept for distribution to a charity any securities of which there is a liability. This section clarifies the process in finalising the distribution of surplus assets among charities.