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Sale and Supply of Alcohol Act 2012

Licensing trusts, community trusts, and other matters - Community trusts - Voluntary administration and liquidation

392: Distribution of assets

You could also call this:

"What happens to a community trust's leftover money and assets when it closes down"

When a community trust is being liquidated, you need to know what happens to any leftover assets. If there is a surplus, it must be given to the territorial authority in charge of the area where the trust operates. You will get the surplus if you are the territorial authority for the whole area where the trust works. If the trust's area covers more than one territorial authority's district, the surplus is split between them. The High Court decides how the surplus is shared, based on how many people in each district can vote for the community trust.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3339949.

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391: Voluntary administration and liquidation under Companies Act 1993, or

"What happens when a community trust is closing down under the Companies Act 1993 rules"

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Part 3Licensing trusts, community trusts, and other matters
Community trusts: Voluntary administration and liquidation

392Distribution of assets

  1. Any net surplus (whether or not in money) of a community trust in liquidation must be distributed to each territorial authority whose district overlaps wholly or partly the trust region.

  2. If the trust region overlaps 2 or more territorial authority districts, the surplus must be distributed in shares to be determined by the High Court in proportion to the number of residents in each territorial authority district who are electors of the community trust.

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