Associations Incorporation Act 2009 No 7
Division 2 External administration on grounds other than insolvency
55 Appointment of administrator by Secretary
The Secretary may appoint an administrator to administer an association’s affairs if:(a) the association has persistently failed to comply with the requirements of this Act or the regulations, and(b) having regard to those circumstances, the Secretary is satisfied that it is in the interests of the association’s members or creditors for an administrator to be appointed.
56 Effect of appointment of administrator
(cf Co-operatives Act 1992, section 334)
(1) On the appointment of an administrator for an association:(a) the committee members and the public officer cease to hold office, and(b) the administrator may terminate any contract of employment with the association or any contract for the provision of secretarial, administrative or other services to the association.(2) An administrator for an association has the functions of the association’s committee and the functions of the association’s public officer.
57 Revocation of appointment
(cf Co-operatives Act 1992, section 335)
(1) An administrator holds office until the administrator’s appointment is revoked or the administrator dies.(2) When a liquidator of an association is appointed, the appointment of any administrator of the association is automatically revoked.(3) Immediately on the revocation of an administrator’s appointment, the administrator must prepare and submit a report to the Secretary showing how the administration was carried out, and for that purpose an administrator has access to the association’s records and documents.(4) On providing the report and accounting fully in relation to the administration of the association to the satisfaction of the Secretary, the administrator is released from any further duty to account in relation to the administration of the association otherwise than on account of fraud, dishonesty, negligence or wilful failure to comply with this Act or the regulations.(5) Before revoking the appointment of an administrator of an association, the Secretary:(a) must appoint another administrator, or(b) must ensure that committee members and the public officer have been elected in accordance with the association’s constitution at a meeting convened by the administrator in accordance with the constitution, or(c) must appoint committee members and a public officer for the association.(6) Committee members elected or appointed under subsection (5):(a) take office on revocation of the administrator’s appointment, and(b) if appointed, hold office until the next annual general meeting of the association after the revocation of that appointment.(7) The public officer of an association appointed under subsection (5) (c) takes office on revocation of the administrator’s appointment.
58 Expenses of administration
(cf Co-operatives Act 1992, section 336)
(1) The expenses of and incidental to the conduct of an association’s affairs by an administrator are payable from the association’s funds.(2) The expenses of conducting an association’s affairs include:(a) if the administrator is a public servant, such amount as the Secretary may certify as being the Crown’s costs in relation to the administrator’s remuneration, or(b) if the administrator is not a public servant, such amount as the Secretary may approve in relation to the administrator’s remuneration.(3) An amount certified under subsection (2) (a) may be recovered in a court of competent jurisdiction as a debt due to the Crown.(4) An administrator has, in relation to the expenses specified in subsection (1), the same priority on the winding up of an association as the liquidator of the association has.
59 Liabilities arising from administration
(cf Co-operatives Act 1992, section 337)
(1) An administrator is liable for any loss incurred by the association because of any fraud, dishonesty, negligence or wilful failure by the administrator to comply with this Act, the regulations or the association’s constitution.(2) An administrator is not liable for any other loss, but must account for the loss in a report given under section 57.
60 Stay of proceedings
(cf Co-operatives Act 1992, section 337B)
(1) If the Secretary appoints an administrator to conduct an association’s affairs, a person must not begin or continue any legal proceedings against the association until the administrator’s appointment is revoked except with the leave of the Supreme Court and, if the Court grants leave, in accordance with any terms and conditions that the Court imposes.(2) A person intending to apply for the leave of the Supreme Court under subsection (1) must give the Secretary not less than 10 days’ notice of intention to apply.(3) On the hearing of an application under subsection (1), the Secretary may be represented and may oppose the granting of the application.
61 Administrator to report to Secretary
(cf Co-operatives Act 1992, section 337C)
On the receipt of a request from the Secretary, the administrator for an association must, without delay, prepare and give to the Secretary a report showing how the administration is being carried out.