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:
- voluntary winding up by members
- voluntary winding up by creditors
- winding up by the Supreme Court
- 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.
Need more information?
PO Box 22
Bathurst NSW 2795