Document ID: chunk:federal_register_of_legislation:C2025C00185:clause:4_16
Version: federal_register_of_legislation:C2025C00185
Segment Type: clause
Provision Reference: sch 4 cl 16
Character Range: 6602603–6603688

16  Liability of members on winding up
 (1) If a transferring financial institution of a State or Territory that was registered under clause 3 of the transfer provisions is wound up, each person:
 (a) who was a past member of the institution at the time it became registered; and
 (b) who did not again become a member; and
 (c) who had not held shares in the institution;
is not liable under Division 2 of Part 5.6 on the winding up.
Note: A person who was a past member at the time of registration and who held shares in the institution may be liable as a past member under Division 2 of Part 5.6.
 (2) If a company that is registered under clause 3 of the transfer provisions is wound up, a person who is taken to have given a guarantee by subclause 13(1) or 14(1) of the transfer provisions, or clause 13 or 14 of this Schedule, is not liable under:
 (a) section 515 merely because the person is or was a member who is taken to have given a guarantee; or
 (b) section 517 or paragraph 518(b) merely because the person is taken to have given a guarantee.

Division 3—Share capital