When a corporation is closed, it is deregistered on the Register of Indigenous Corporations and has no legal status. When and why it is closed depends on many things but closures usually occur because the members decide to end the corporation. ORIC needs to be involved in this process.
Closing a corporation registered with ORIC
Closing a corporation means the name of the corporation is struck off from the Register of Indigenous Corporations and effective from this date the corporation has no legal status. The process to close a corporation initiated by members is called voluntary winding up. (Note: a corporation can be closed by other methods—refer to deregistration and winding up.)
Voluntary winding up is suitable when a corporation is solvent (the corporation has sufficient assets to pay all its liabilities) but the existence of the corporation is no longer required.
If the corporation is not subject to any other legal proceedings or any regulatory action by the Registrar, the members must pass a special resolution; that is, a resolution requiring a 75 per cent majority of eligible voters who vote at a meeting.
The contact person or secretary of the corporation will have to fill in a form notifying the Registrar that the corporation has passed a resolution for voluntary winding up.