Editing Constitution of Urabba Parks/Section 88
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[[Constitution of Urabba Parks/ | [[Constitution of Urabba Parks/contents|Table]]|[[Constitution of Urabba Parks/notes|Notes]]|[[Constitution of Urabba Parks/Section 87|Previous]]|[[Constitution of Urabba Parks/Section 89|Next]]|[[Constitution of Urabba Parks/download|Download]] | ||
= Service membership = | = Service membership = | ||
== Rights of existing members == | == Rights of existing members == | ||
(1) Unless otherwise provided under the law of Urabba Parks, no original grant of service membership, or any conversion from one class of service membership to another class of service membership, shall affect the rights of any existing member, service member or otherwise. | |||
== Return of capital == | == Return of capital == | ||
(2) Upon the winding-up of Urabba Parks and after the payments of all debts and obligations except those of membership: | |||
: | :(a) service members are repaid their deposits, accumulated interest and charity distributions; | ||
: | :(b) if there are not enough assets to meet obligations under paragraph (a), then all service members ranking equally shall share the loss in equal proportion; and | ||
: | :(c) once the liabilities and obligations in paragraph (a) have been settled no service member shall be entitled to participate in any further charity distribution of assets. | ||
== Making dividends == | == Making dividends == | ||
(3) No charity distributions may be made: | |||
: | :(a) unless the amounts paid up by service members and any outstanding interest can be paid back in full; and | ||
: | :(b) other than in the case of accumulated charity distribution entitlements of service members, unless those charity distributions have been made; | ||
provided that once the interest and cumulative charity distribution entitlements have been settled no service member shall be entitled to participate in any further charity distribution of profits. | provided that once the interest and cumulative charity distribution entitlements have been settled no service member shall be entitled to participate in any further charity distribution of profits. | ||
= | |||
= Relevant notes from the Explanatory Memorandum = | |||
224. Subsection (1) provides that the grant of service membership shall not in itself affect the rights of other members. Because service membership is regarded as preference shares (as it is redeemable), and an issue of preference shares is taken to be a variation of class rights of existing preference shareholders under subsection 246C(6) of the ''Corporations Act 2001'', this provision is necessary to ensure that new service membership can be granted without the risk of being called into question over a variation of class rights. | 224. Subsection (1) provides that the grant of service membership shall not in itself affect the rights of other members. Because service membership is regarded as preference shares (as it is redeemable), and an issue of preference shares is taken to be a variation of class rights of existing preference shareholders under subsection 246C(6) of the ''Corporations Act 2001'', this provision is necessary to ensure that new service membership can be granted without the risk of being called into question over a variation of class rights. | ||
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{{Constitution of Urabba Parks|state=expanded}} | |||
[[Category:Constitution of Urabba Parks| ]] | |||
[[Category:Urabbaparcensian constitutional law| ]] | [[Category:Urabbaparcensian constitutional law| ]] |