Plain language law

New Zealand law explained for everyone

Racing Industry Act 2020

Racing - Transfer of assets and surplus venues - Transfer of assets

24: Transfer of assets on dissolution of club

You could also call this:

“Club's leftover money and property goes to bigger racing group when club shuts down”

If a racing club stops operating for any reason, this is what happens to its assets:

After the club has paid all the money it owes, any assets left over will go to the racing code that the club was part of. The racing code is like a bigger organisation that oversees that type of racing.

The racing code then needs to think about whether they should do anything special with these assets. They might need to consider if the local community had any interest in the racing venues that the club used to own. For example, they might decide to give some money to the community to make up for the loss of the venue.

This process happens even if the racing club was closed down by the government under section 36(3) of the law. The details of how to handle any disputes about this are explained in section 25 of the law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS292068.

Topics:
Money and consumer rights > Gambling Business > Industry rules
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Part 2 Racing
Transfer of assets and surplus venues: Transfer of assets

24Transfer of assets on dissolution of club

  1. This section applies if a racing club is dissolved by any means (including under section 36(3)).

  2. Subject to section 25, the assets of the racing club remaining after all creditors’ claims on the club have been satisfied vest in the racing code with which the club was registered.

  3. The code must consider whether any action (for example, a payment) is warranted to recognise the community interest (if any) in any racing venue or venues of the racing club that are vested in the code.