Winding up by court order
122. (1) A credit union may be wound up by order of the court, (a) where the members by a majority of the votes cast at a general meeting called for that purpose, pass a resolution authorizing an application to be made to the court to wind up the credit union; (b) where proceedings have been commenced to wind up the credit union voluntarily and it appears to the court that it is in the interest of contributories and creditors that the proceedings should be continued under the supervision of the court; (c) where it is proved to the satisfaction of the court that the credit union, though it may be solvent, cannot by reason of its liabilities continue its business and that it is advisable to wind it up; or (d) where in the opinion of the court it is just and equitable for some reason other than the bankruptcy or insolvency of the credit union that it should be wound up. Who may apply (2) A winding-up order may be made upon the application of the credit union or a member or, where the credit union is being wound up voluntarily, upon the application of the Director, liquidator or contributory or of a creditor having a claim of $200 or more. Notice to credit union (3) Except where the application is made by the credit union, four days notice of the application shall be given to the credit union. Notice to Director (4) Except where the application is made by the Director, four days notice of the application shall be given to the Director. Power of court (5) The court may, (a) make the order applied for; (b) dismiss the application with or without costs; (c) adjourn the hearing conditionally or unconditionally; (d) make an interim or other order as it considers appropriate; or (e) refer the proceedings for the winding up to an officer of the court for inquiry and report and may authorize the officer to exercise such powers of the court as are necessary for the reference. Appointment of liquidator (6) The court making the winding-up order may appoint one or more persons as liquidator of the estate and effects of the credit union for the purpose of winding up its affairs and distributing its property. Remuneration (7) The court may at any time fix the remuneration of the liquidator and the costs, charges and expenses of the winding up. Vacancy (8) Where a liquidator who is appointed by the court dies or resigns or the office becomes vacant for any reason, the court may fill the vacancy. Removal (9) The court may by order, for cause, remove a liquidator appointed by it and appoint another liquidator in the stead of the removed liquidator. Notice of appointment (10) A liquidator appointed by the court shall forthwith give notice to the Director and the Minister of the court order respecting the winding up and shall publish the notice in The Ontario Gazette. Commencement of winding up (11) Where a winding-up order is made by the court without prior voluntary winding-up proceedings, the winding up shall be deemed to commence at the time of the service of the notice of the application upon the Director. Proceedings in winding up after order (12) Where a winding-up order has been made by the court, proceedings for the winding up of the credit union shall be taken in the same manner and with the like consequences as are provided for a voluntary winding up, except that, (a) the list of contributories shall be settled by the court unless it has been settled by the liquidator before the winding-up order; and (b) all proceedings in the winding up are subject to the order and direction of the court. Review by court (13) Where the list of contributories has been settled by the liquidator before the winding-up order, it is subject to review by the court. Meeting of members may be ordered (14) Where a winding-up order has been made by the court, the court may direct meetings of the members of the credit union to be called, held and conducted in such manner as the court thinks fit for the purpose of ascertaining their wishes, and may appoint a person to act as chair of any such meeting and to report the results of it to the court. Order for delivery of property (15) Where a winding-up order has been made by the court, the court may require any contributory for the time being settled on the list of contributories, or any director, employee, trustee, receiver, banker, agent or officer of the credit union, to pay, deliver, convey, surrender or transfer forthwith, or within such time as the court directs, to the liquidator any money, books, papers, registers and other records, estate or effects that are in any such person’s hands and to which the credit union is apparently entitled. Inspection of documents and records (16) Where a winding-up order is made by the court, the court may make an order for the inspection of the books, papers, registers and other records of the credit union by its creditors and contributories, and any documents and records in the possession of the credit union may be inspected in conformity with the order. Proceedings against credit union after order (17) After the commencement of a winding up by order of the court, (a) no action or other proceedings shall be commenced or continued against the credit union; and (b) no attachment, sequestration, distress or execution shall be carried out against the estate or effects of the credit union, except by leave of the court and subject to such terms as the court may impose. Provision for discharge of liquidator and distribution by the court (18) Where the realization and distribution of the property of a credit union being wound up under an order of the court has proceeded so far that in the opinion of the court it is expedient that the liquidator should be discharged and that the property of the credit union remaining in the liquidator’s hands can be better realized and distributed by the court, the court may make an order discharging the liquidator and for payment, delivery and transfer into court, or to such officer or person as the court directs, of such property, and it shall be realized and distributed by or under the direction of the court among the persons entitled thereto in the same way as nearly as may be as if the distribution were being made by the liquidator and the court may make an order directing how the documents and records of the credit union and of the liquidator are to be disposed of, and may order that they be deposited in court or otherwise dealt with as the court considers appropriate. Order for dissolution (19) The court at any time after the affairs of the credit union have been fully wound up may, upon the application of the liquidator or any other person interested, make an order dissolving it, and it is dissolved on the date fixed in the order. Notice to Director (20) The person on whose application the order was made shall, within ten days after it was made, file with the Director a certified copy of the order and the Director shall cause notice of the dissolution to be given in The Ontario Gazette. R.S.O. 1980, c.102, s.121.