Closing a co-operative

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:

  1. voluntary winding up by members
  2. voluntary deregistration by members
  3. winding up due to insolvency (either commenced by the directors, creditors or the court).

Further information

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