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Corporations (Aboriginal and Torres Strait Islander) Act 2006

CHAPTER 2 - ABORIGINAL AND TORRES STRAIT ISLANDER CORPORATIONS  

PART 2-5 - EFFECTS OF REGISTRATION  

Division 42 - Effects of registration  

SECTION 42-45   REGISTRATION OF AMALGAMATED CORPORATION (LIABILITY OF MEMBERS ON WINDING UP)  

42-45(1)    
This section applies if:

(a)    an Aboriginal and Torres Strait Islander corporation (the amalgamated corporation ) is registered under Part 2-3 as a result of an application made under section 23-1 to register the amalgamated corporation to replace 2 or more existing Aboriginal and Torres Strait Islander corporations (the amalgamating corporations ); and

(b)    a person stopped being a member of an amalgamating corporation before the registration of the amalgamated corporation.

42-45(2)    
The person is to be treated as a past member of the amalgamated corporation in applying Division 2 of Part 5.6 of the Corporations Act (as applied by section 526-35 of this Act) to a winding up of the amalgamated corporation.

42-45(3)    
However, the person ' s liability to contribute to the amalgamated corporation ' s property is further limited by this section to an amount sufficient for the following:

(a)    payment of debts and liabilities contracted by the amalgamating corporation before the registration of the amalgamated corporation;

(b)    payment of the costs, charges and expenses of winding up the amalgamated corporation, so far as those costs, charges and expenses relate to those debts and liabilities;

(c)    the adjustment of the rights between the contributories, so far as the adjustment relates to those debts and liabilities.