Document ID: chunk:federal_register_of_legislation:C2004C01110:clause:4_16
Version: federal_register_of_legislation:C2004C01110
Segment Type: clause
Provision Reference: sch 4 cl 16
Character Range: 90828–91988

16  Liability of members on winding up

 (1) If a transferring financial institution of this jurisdiction that is registered under clause 3 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 is wound up, a person who is taken to have given a guarantee by subclause 13(1) or 14(1) 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.

Note: Section 1416 and clause 10 preserve the application of section 518 to transferring financial institutions that are taken to be registered as companies limited by shares and guarantee.

Subdivision C—Share capital