Involuntarily closing an association

An association can be wound up by the court if:

• the association has resolved that it be wound up by the court - this would be decided by special resolution
• the association has not commenced any activity or function and more than one year has lapsed since the date of incorporation
• the association is unable to pay its debts
• the members of the committee have acted in their own interests rather than in the interests of the association (or in any other manner that appears to be unfair or unjust to other members)
• the affairs of the association are being conducted in a way that are oppressive or unfairly prejudicial to members - or are contrary to the interests of the members
• the court is of the opinion it is just and fair that the association be wound up.

An association can be wound up by CBS if:

• the association has failed to comply with a condition imposed by CBS or the Minister
• the incorporation of the association has been obtained by mistake or fraud
• the association has failed to remedy a breach of the Associations Incorporation Act 1985
• the association has not requested CBS transfer its activities to another body corporate within 3 months of being asked to do so.