Rights and liabilities of members under bankruptcy or mental incapacity (CNL ss95, 96 & 117)
25 Rights and liabilities of members under bankruptcy or mental incapacity (CNL ss95, 96 & 117)
A person’s membership ceases upon bankruptcy and that person’s shares may be transferred to the Official Trustee in Bankruptcy and dealt with under the provisions of section 95 of the Law.
A person appointed under a law of a State or Territory to administer the estate of a member who, through mental or physical infirmity, is incapable of managing his or her affairs, may be registered as the holder of the member’s shares and the rights and liabilities of membership vest in that person during the period of the appointment.
The liabilities attaching to the shares of a person under bankruptcy or mental incapacity continue in accordance with section 96 of the Law.
Upon application by a person appointed to manage the affairs of a member referred to in subrule (2), the board may decide to suspend some or all active membership obligations if there are grounds to believe that the member’s physical or mental infirmity is temporary.
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