There are many reasons why the members of a co-operative may choose to close. It may simply be that the members have moved in a new direction or the reason for establishing the co-operative no longer exists.
Sometimes, economic conditions or changes in business circumstances will lead to closure. In some cases, a co-operative may be experiencing cash flow issues, in more serious situations a co-operative may find that it cannot pay its debts as and when they fall due.
As there are legal and financial implications for closing a co-operative, it is important that members of the co-operative obtain their own independent advice about how to proceed.
Generally, there are three circumstances under which a co-operative may close:
- voluntary winding up by members
- voluntary deregistration by members
- winding up due to insolvency (either commenced by the directors, creditors or the court).
For further information please contact:
Consumer and Business Services
Licensing and Registration
Chesser House, 91 Grenfell Street, Adelaide SA 5000
GPO Box 1719, ADELAIDE SA 5001
Telephone: 131 882
Facsimile: (08) 8204 9771