Section 92 of the Constitution of Urabba Parks

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Section 92 of the Constitution of Urabba Parks provides for the rights of members to charity distributions, including upon winding-up.

Compiled text (Section 92 - Rights of members to charity distributions)

Saving as to restrictions on public funds

(1) Any charity distribution of property that formed part of a public fund immediately before the commencement of winding-up of the public fund is to be made to a giving pool separate from any other giving pool constituted of amounts not forming part of a public fund or which formed part of another public fund, and shall be subject to the restrictions applicable on the distribution on property in the public fund.

Counting of pledged membership

(2) In determining charity distribution entitlements:

(a) membership is counted on the paid up amount;

(b) any amount paid in advance of a call is disregarded, and are taken to be a loan from the member.

Grant of membership by continuing charity

(3) In the case of an operating company of an association formed within Urabba Parks limited by shares, the operating company may:

(a) issue or transfer shares to members of Urabba Parks continuing as members of the association, in consideration for:

(i) in the case of an issue of redeemable preference shares – the redemption of service membership with a principal amount of those shares for no consideration; and

(ii) in the case of an issue of any other kind of share – the nomination of the operating company for charity distribution made in any respect of any membership granted by the association; and

(b) repurchase shares held by Urabba Parks for the consideration of immediately issuing shares under paragraph (a).

Enactment information

Status

Proposed

Commencement

Law not made

Entrenchments

Endnotes

Please see information about the endnotes and the abbreviation key

Legislation history
Statute or Instrument	Number and year	Assent	Commencement	Application, saving and transitional provisions
Urabba Parks Proprietary Limited Constitution Statute 2021	No. 1, 2021	5 Mar 2021	5 Mar 2021 (gaz 2021,p. 1)

Amendment history
Provision affected	How affected

Relevant notes from the explanatory memorandum

237. Subsection (1) provides that charity distributions from public funds shall be separated from other charity distributions and be allocated to giving pools subject to the same restrictions as the public fund. This ensures that any surplus funds from a public fund shall be distributed to another Deductible Gift Recipient within the meaning of the Income Tax Assessment Act 1997.

238. Subsection (2) provides that membership is only counted for the purpose of the determination of charity distribution rights if the membership is paid up. Membership is paid up unless there is an amount that can be called in by the Urabba Parks, usually at pre-agreed times (referred to in this Constitution as a pledge). Amounts paid by a member in advance of such call are taken to be a loan from the member and not counted in the amount paid up. Provisions to this effect are common in many company constitutions.

239. Subsection (3) provides for the granting of membership by way of an issue of shares by an operating company of an association to members of the association. This is to allow for the continuation of the association if Urabba Parks is wound up or the association separates from Urabba Parks.

Notes

Judgments

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