THE CORPORATIONS LAW

SCHEDULES

SCHEDULE 4

TRANSFER OF FINANCIAL INSTITUTIONS AND FRIENDLY SOCIETIES

Note:

See section 1465A.

PART 2 - TRANSFER TO CORPORATIONS LAW REGISTRATION

Division 2 - The consequences of the transfer

Subdivision B - Membership

Liability of members on winding up  

16(1) 

If a transferring financial institution of this jurisdiction that is registered under clause 3 is wound up, each person:

(a)  who was a past member of the institution at the time it became registered; and

(b)  who did not again become a member; and

(c)  who had not held shares in the institution;

is not liable under Division 2 of Part 5.6 on the winding up.

Note:

A person who was a past member at the time of registration and who held shares in the institution may be liable as a past member under Division 2 of Part 5.6.

16(2) 

If a company that is registered under clause 3 is wound up, a person who is taken to have given a guarantee by subclause 13(1) or 14(1) is not liable under:

(a)  section 515 merely because the person is or was a member who is taken to have given a guarantee; or

(b)  section 517 or paragraph 518(b) merely because the person is taken to have given a guarantee.

Note:

Section 1416 and clause 10 preserve the application of section 518 to transferring financial institutions that are taken to be registered as companies limited by shares and guarantee.