Closing a co-operative

A co-operative may choose to close for a number of reasons, including declining membership or if the reason for establishing the co-operative no longer exists.

A co-operative can be wound up in four ways:

  1. voluntary winding up by members
  2. voluntary winding up by creditors
  3. winding up by the Supreme Court
  4. on a certificate of the Registrar

In addition, a co-operative may apply for deregistration if it has less than $1,000 in assets and if all the members agree.

Voluntary winding up

In most cases a co-operative will be voluntarily wound up by its members. Provisions of the Corporations Act 2001 relating to the winding up of a company are applied to the winding up of a co-operative.

A voluntary winding up is initiated by a special postal ballot of members. Go to the voluntary winding up page for more information on members’ voluntary winding up.

A members’ voluntary winding up is converted into a creditors’ voluntary winding up if the co-operative is insolvent.

Winding up by the Supreme Court

A co-operative may be wound up by the Supreme Court in the same way and in the same circumstances as a company under the Corporations Act 2001.  You should seek legal advice for information regarding this process.

Deregistration on the application of members

A co-operative that has less than $1,000 in assets may be able to apply to the Registrar for deregistration. Go to the voluntary deregistration of a co-operative page for more information on members’ voluntary winding up.

Certificate of the Registrar

In very limited circumstances a co-operative may be wound up on a certificate of the Registrar. Where a certificate is issued the Registrar may appoint a person to be liquidator of the co-operative.

Further information

For further information please contact:

Registry Services
PO Box 22
Bathurst  NSW  2795
Tel: 02 6333 1400
Freecall: 1800 502 042
Email:  registryinquiries@finance.nsw.gov.au

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