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Lawyers and Conveyancers Act 2006

Miscellaneous provisions - Transitional provisions relating to dissolution of District Law Societies

374: Power to transfer assets of District Law Society library

You could also call this:

"Transferring District Law Society library assets to other groups"

Illustration for Lawyers and Conveyancers Act 2006

You can transfer assets from a District Law Society library to certain bodies. This can happen before six months are up, as stated in section 373(1). You can transfer these assets if they were provided and maintained under section 26(2) of the Law Practitioners Act 1982. You can transfer assets to another District Law Society, an incorporated society, or the New Zealand Law Society. The District Law Society can decide the terms of the transfer. They can transfer assets with or without payment, as stated in section 373(1). The District Law Society can only transfer assets if it has more assets than debts. This must be true before and after the transfer. If the District Law Society transfers assets, it does not affect the rights of its creditors, who can still claim what they are owed. The creditors' rights will be against the body that receives the transferred assets.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM367881.

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373: Assets and liabilities of District Law Societies, or

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Part 11Miscellaneous provisions
Transitional provisions relating to dissolution of District Law Societies

374Power to transfer assets of District Law Society library

  1. A District Law Society to which section 372 applies may, before the close of the period of 6 months specified in section 373(1), transfer to any body specified in subsection (2) of this section any assets of the law library provided and maintained by that District Law Society under section 26(2) of the Law Practitioners Act 1982.

  2. The bodies to which assets may be transferred under subsection (1) are as follows:

  3. a District Law Society to which section 372 applies:
    1. an incorporated society named in a resolution passed under section 373(1)—
      1. by the members of the District Law Society by which the transfer is made; or
        1. by the members of any other District Law Society to which section 372 applies:
        2. the New Zealand Law Society.

          1. Subject to subsections (4) and (5), a transfer made under subsection (1) by a District Law Society may be made—

          2. with or without consideration or for an inadequate consideration, and upon such terms and conditions as may be agreed upon between the District Law Society and the body to which the assets are being transferred; and
            1. whether or not the members of the District Law Society have passed a resolution under section 373(1).

              1. A transfer may be made under subsection (1) by a District Law Society only if its assets—

              2. exceed its liabilities; and
                1. will, at the time when the transfer takes effect, exceed its liabilities.

                  1. A transfer made under subsection (1) does not operate to affect the rights existing at the time of the transfer of any creditor of the District Law Society, whether secured or unsecured, and such rights are, if necessary, to enure against the transferee.