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Close down a co-operative

Closure

Your co-operative might close down:

  • as your voluntary decision
  • at our directive
  • due to a Supreme Court order.

Voluntary

You can choose to close a co-operative if:

  • your creditors choose to issue a voluntary closure
  • the members pass a special resolution to close by a special postal ballot.

If members choose to close the co-operative:

  • fill out and submit a draft statement form and fee
  • wait for us to approve it
  • give notice of the special postal ballot to members.

Once you’ve had your special postal ballot, we will send you:

  • a registration form for the special resolution
  • a statutory declaration form to confirm the change.

Fill out and submit both forms and fees to us to register the special resolution.

Involuntary

We can close your co-operative if it stops meeting its requirements. This could be because:

  • you have fewer than 5 members
  • you haven’t started operating even though you’ve been registered for 12 months
  • you haven’t had enough directors to form a quorum at a board meeting for more than 1 month
  • you have suspended your operations for more than 6 months
  • your rules specify a duration for the co-operative to exist, and this has expired.

We can also close your co-operative if:

  • you obtained your registration by mistake or fraud
  • your co-operative exists for an illegal purpose
  • the co-operative has wilfully broken the law or your own rules (despite our warnings)
  • your rules don’t set out any active membership provisions (despite our warnings)
  • closure would best serve the members’, creditors’ or public interest.

We will look at the evidence to decide if any of these situations apply. If we decide to close a co-operative, we will:

  • appoint a liquidator
  • issue you a certificate of closure.

Deregistration

After you close, we deregister you as a co-operative. This means that you can no longer operate in Queensland.

You may voluntarily deregister the co-operative. Email us for a copy of Co-operative Form 34 - Application for voluntary deregistration of a co-operative.