Liquidation (Winding up or de-registering a co-operative)

If members decide to close down their Co-operative and end the business of the Co-operative, this is referred to as “winding up” or de-registering the Co-operative.

• The members may decide to voluntarily deregister the co-operative at a general meeting.  In that case, you need to pass a special resolution and 75% of the members will have to vote in favour of the special resolution to voluntarily wind up the co-operative.There are two reasons why you might have to wind up your Co-operative.
  1. The members may decide to do this at a general meeting in terms of section 71A of the amended Act.  In that case, you need to pass a special resolution and 75% of the members will have to vote in favour of the resolution.  If you do this, then you will need to complete form  CO-OP10 to inform the Registrar of Co-operatives that the members have voluntarily decided to deregister their Co-operative.
  2. A Court or the Tribunal may order that a co-operative be wound up to wind up its business if it is unable to pay its debts, it appears just and equitable to do so and there is no reasonable probability that it will be able to pay its debts or become a viable co-operative.
  If the assets of a co-operative exceed R1000, 00, the co-operative must follow a liquidation process.  When a Co-operative is liquidated, a liquidator will distribute its remaining assets and property.  The liquidator will sort out claims against the Co-operative, payments of its debts, collection of money still owed to it, payment of share capital to shareholders, and the payment of any remaining surplus to the members according to the proportion of transactions each of them did with the Co-operative.  If the assets of a co-operative are less than a R 1000, then the co-operative can follow a normal deregistration process.
• Liquidation of a co-operative

Apply for voluntary winding up (de-registration) of your co-operative

The following supporting documents must be included:

• Complete form CO-OP10.
• A copy of the notice convening the meeting and setting out the proposed resolution and the reasons therefore
• Power of attorney – if representative

Liquidation or Winding up by Court Order

• Court order to commence winding up proceedings.

De-registration by order of the Minister of Trade and Industry

• The Registrar will notify the co-operative of liquidation or winding up proceedings.

NB: Please note that full finalisation of de-registrations is dependent on statutory advertisement process which is in excess of 3 months

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