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Incorporated Societies Act 2022

Removal from register, amalgamation, liquidation, and other processes - Liquidation - High Court may put society into liquidation

210: High Court may put society into liquidation

You could also call this:

"The High Court can close a society if it's not working properly or has broken the rules."

Illustration for Incorporated Societies Act 2022

The High Court can put a society into liquidation. This happens when a person is appointed as a liquidator. You might see this if the society has fewer than 10 members. The High Court can also do this if the society stops operating for a year or more. It can happen if the society cannot pay its debts. You will see this if the society's rules do not follow the Incorporated Societies Act 2022. The High Court can put a society into liquidation if a member gets money unfairly. It can also happen if the society was incorporated by fraud or mistake. The High Court can do this if the society has an illegal purpose. The High Court can put a society into liquidation if it does not follow the rules. It can also happen if the High Court thinks it is fair to put the society into liquidation.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS101106.

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209: Application of Companies Act 1993 where members resolve to put society into liquidation, or

"What happens when a society is closed down and some company rules apply"

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211: Limit on liquidation where society has fewer than 10 members, or

"What happens if a society has fewer than 10 members and might be closed down?"

Part 5Removal from register, amalgamation, liquidation, and other processes
Liquidation: High Court may put society into liquidation

210High Court may put society into liquidation

  1. The High Court may put a society into liquidation by the appointment as liquidator of a named person or of an Official Assignee if any of the following circumstances exist:

  2. the members of the society are reduced in number to fewer than 10; or
    1. the society suspends its operations for 1 year or more; or
      1. the society is unable to pay its debts; or
        1. the society’s constitution does not comply with the requirements of this Act; or
          1. the society carries on any operations under which a member derives a financial gain contrary to the provisions of this Act; or
            1. incorporation has been obtained for the society by fraud or mistake; or
              1. the society exists for an illegal purpose; or
                1. there has been, in relation to the society, failure to comply with any provision of, or any order given under, this Act; or
                  1. the High Court is satisfied that it is just and equitable that the society should be put into liquidation.