Bankstown Community Child Care Incorporated [2008] NSWSC 173

Bankstown Community Child Care Incorporated [2008] NSWSC 173

Where, following winding up under court order, an incorporated association has no remaining members and no special resolution exists for the distribution of surplus property, the court may, under s 53(3), order disposal of the surplus to appropriate community organisations as appears just.

Parties
First Applicant: Morgan Lane; Second Applicant: Bankstown Community Child Care Incorporated; Recipient: Bankstown Community Resources Group Incorporated; Recipient: Milperra Community & Children's Services Limited
Jurisdiction
Australia
Judgment Date
05 March 2008
Procedural Posture
Winding Up of Incorporated Association / Final Distribution Order After Winding Up
Outcome
Order for equal distribution of surplus assets to two community organisations; costs of application to be part of winding up expenses.
Legal Topics
Winding Up, Distribution of Surplus Assets, Liquidator Powers, Court Orders
Corporations Law Associations and Clubs Law Winding Up Distribution of Surplus Assets Liquidator Powers Court Orders

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Parties

Morgan Lane

First Applicant

Bankstown Community Child Care Incorporated

Second Applicant

Bankstown Community Resources Group Incorporated

Recipient

Milperra Community & Children's Services Limited

Recipient

Procedural Posture

Winding Up of Incorporated Association / Final Distribution Order After Winding Up

Legal Issues

  1. 1 Whether court has power to direct distribution of surplus assets where no special resolution exists
  2. 2 Whether the association or liquidator has standing to apply for order under s 53(3)
  3. 3 Appropriate recipients for surplus assets of wound-up association

Ratio Decidendi

Where, following winding up under court order, an incorporated association has no remaining members and no special resolution exists for the distribution of surplus property, the court may, under s 53(3), order disposal of the surplus to appropriate community organisations as appears just.

Court Disposition

Order for equal distribution of surplus assets to two community organisations; costs of application to be part of winding up expenses.

Orders

  • Order that surplus property be disposed of by the liquidator by transfer of half to Bankstown Community Resources Group Incorporated and half to Milperra Community & Children's Services Limited.
  • Order that the costs of this application form part of the costs and expenses of the winding up of Bankstown Community Child Care Incorporated.