Liquidation

Liquidation of a charitable trust is initiated in one of two ways.

By resolution of the board

A board incorporated on the application of members of a society can be put into liquidation by a members’ resolution that is confirmed at a later meeting. 

This is equivalent to the liquidation of a company by resolution of its shareholders under the Companies Act 1993 and is treated in the same way.  A board should take advice from its accountant and solicitor before considering this procedure.

Read more about liquidation on the Companies Office website.

By the High Court

The High Court can also put a board into liquidation if it considers it is just and equitable to do so.  Generally the High Court will receive liquidation applications made by:

• a creditor
• the Registrar or
• the Attorney-General who represents the community in whose general interest charitable trusts are created.

Read more about liquidation on the Companies Office website.