When a corporation is closed, it is removed from the Register of Indigenous Corporations and has no legal status. When and why it is closed depends on many things but closures usually occur because the members decide to end the corporation. ORIC needs to be involved in this process.
Closing a corporation means the name of the corporation is struck off from
the Register of Indigenous Corporations and effective from this date the
corporation has no legal status. The process to close a corporation initiated by
members is called voluntary winding up. (Note: a corporation can be closed by
other methods—refer to deregistration and winding up.) Voluntary winding up is suitable when a corporation is solvent (the
corporation has sufficient assets to pay all its liabilities) but the existence
of the corporation is no longer required. If the corporation is not subject to any other legal proceedings or any
regulatory action by the Registrar, the members must pass a special resolution;
that is, a resolution requiring a 75% majority of
eligible voters who vote at a meeting. The contact person or secretary of the corporation will have to fill in a
form notifying the Registrar that the corporation has passed a resolution for
voluntary winding up. However, all forms are currently being re-written ready
for the start of the Corporations (Aboriginal and Torres Strait Islander) Act
2006 on 1 July 2007. New forms will be available after this date. Because of
the implementation of the new Act, you may experience some delays in processing
of new applications for registration. We apologise for these delays.Closing a corporation registered with ORIC