Closing a co-operative

A co-operative may close for several reasons. These may include declining membership or if its original purpose no longer exists.

A co-operative can be wound up in 4 ways:

1. voluntary winding up by members
2. voluntary winding up by creditors
3. winding up by the Supreme Court
4. on a certificate of the Registrar

Also, a co-operative may apply for deregistration if it has less than $1,000 in assets and all members agree.

Voluntary winding up

In most cases, the members will choose to wind up a co-operative. The terms of the Corporations Act 2001 (Commonwealth) on winding up a company also applies to co-operatives.

A voluntary winding up is initiated by a special postal ballot of members. Go to the voluntary winding up page for more information on members’ voluntary winding up.

A members' voluntary winding up becomes a creditors' voluntary winding up if the co-operative is insolvent.

Winding up by the Supreme Court

The Supreme Court may wind up a co-operative. It can do so in the same way and under the same circumstances as a company under the Corporations Act 2001 (Commonwealth). You should seek legal advice for information regarding this process.

Deregistration on the application of members

A co-operative with less than $1,000 in assets may be able to apply to the Registrar for deregistration. For info on members' voluntary winding up, visit the page on voluntary deregistration of a co-operative.

Certificate of the Registrar

In special cases, a co-operative can be wound up on a certificate of the Registrar. When the certificate is given, the Registrar appoints someone to be a liquidator of the co-operative.