New body is a continuation of the co-operative
409 New body is a continuation of the co-operative
When a co-operative transfers to a new body, the corporation constituted by the new body is taken to be the same entity as the corporation constituted by the co-operative.
Note
Division 3 also applies to a transfer of incorporation under this Division – see section 412.
If the new body is a company under the Corporations Act, subsection (1) and Division 3 have effect subject to the provisions of section 601BM of that Act.
Note
Section
601BM of the Corporations Act provides that the registration of a body as a company under Part 5B.1 of that Act does not:
(a) create a new legal entity; or
(b) affect the body's existing property, rights or obligations (except as against the members of the body in their capacity as members); or
(c) render defective any legal proceedings by or against the body or its members.
This Act’s bill:Explanatory statement
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