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Constitution of Urabba Parks/Section 88
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= <span id="EM"></span>Relevant notes from the Explanatory Memorandum = 224. Subsection (1) provides that the grant of service membership shall not in itself affect the rights of other members. Because service membership is regarded as preference shares (as it is redeemable), and an issue of preference shares is taken to be a variation of class rights of existing preference shareholders under subsection 246C(6) of the ''Corporations Act 2001'', this provision is necessary to ensure that new service membership can be granted without the risk of being called into question over a variation of class rights. 225. Subsection (2) places the repayment of the deposits made of service membership and any outstanding interest and charity distribution entitlements of service members above all other distributions to charities chosen by members on winding-up, provided service members are not entitled to any further charity distribution. This provision, along with the section 89, effectively makes service membership classified as a liability instead of equity for accounting purposes; the repayment of the deposit upon winding up is effectively a repayment of money lent and not a distribution of the surplus assets of Urabba Parks. 226. Subsection (3) limits charity distribution for members unless the outstanding interest and charity distribution entitlements of service members has been paid. Otherwise, service membership usually is granted with cumulate charity distribution entitlements, meaning a rate on the amount deposited is made as a charity distribution. This provision ensures the ranking of service membership in relation to charity distributions is consistent with that of a debt instrument. [[Category:Urabbaparcensian constitutional law| ]]
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