HOUSING SOCIETIES REPEAL BILL 2005

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This is a Bill, not an Act. For current law, see the Acts databases.

HOUSING SOCIETIES REPEAL BILL 2005

Western Australia

Housing Societies Repeal Bill 2005

CONTENTS

Part 1 -- Preliminary
1. Short title 2
2. Commencement 2
3. Expressions used in this Act 2
4. Relationship of this Act to the Housing Societies
Act 1976 and the rules of societies 3
Part 2 -- Winding up of societies
5. Purpose of this Part 4
6. Application of this Part 4
7. Societies to cease carrying on business 4
8. Societies to be wound up 5
9. Minister may intervene 5
10. Distribution of property of societies on or after
preservation day 5
11. Application of certain distributions after
commencement 7
12. Recovery of distributions not in accordance with this
Part 7
13. Payments into and out of the Social Housing Account 8
14. Liquidator's report 8
15. Extent of application of provisions of the
Corporations Act 8
16. Housing Societies Act 1976 amended 9
17. Transitional regulations 9

038--1 page i
Housing Societies Repeal Bill 2005

Contents

Part 3 -- Repeal of Acts and
consequential amendments to other
Acts
18. Housing Societies Act 1976 repealed 11
19. Housing Loan Guarantee Act 1957 repealed 11
20. Civil Judgments Enforcement Act 2004 amended 11
21. Companies (Co-operative) Act 1943 amended 11
22. Country Housing Act 1998 amended 12
23. Credit (Administration) Act 1984 amended 12
24. Credit Act 1984 amended 12
25. Criminal Property Confiscation Act 2000 amended 13
26. Equal Opportunity Act 1984 amended 13
27. Finance Brokers Control Act 1975 amended 14
28. Housing Act 1980 amended 14
29. Real Estate and Business Agents Act 1978 amended 14
30. Stamp Act 1921 amended 15
31. Western Australian Treasury Corporation Act 1986
amended 15

page ii
Western Australia

LEGISLATIVE ASSEMBLY

Housing Societies Repeal Bill 2005

A Bill for

An Act to provide for the winding up of housing societies, to repeal
the Housing Societies Act 1976 and the Housing Loan Guarantee
Act 1957, to make consequential amendments to other Acts, and for
related purposes.

The Parliament of Western Australia enacts as follows:

page 1
Housing Societies Repeal Bill 2005
Part 1 Preliminary

s. 1

Part 1 -- Preliminary
1. Short title
This is the Housing Societies Repeal Act 2005.

2. Commencement
5 (1) Subject to this section, this Act comes into operation on the day
on which it receives the Royal Assent.
(2) Sections 3, 4 and 10 are deemed to have come into operation on
preservation day.
(3) Part 3 comes into operation on a day fixed by proclamation.
10 (4) A proclamation cannot be made under subsection (3) unless the
Minister is satisfied that the registration of each society in
existence immediately before commencement day has been
cancelled.
3. Expressions used in this Act
15 (1) In this Act, unless the contrary intention appears --
"commencement day" means the day on which this Act
receives the Royal Assent;
"contributing member" means a member of a society who, on
preservation day had an advance of money made by the
20 society out of its own funds that had not been fully repaid
on preservation day;
"Corporations Act" means the Corporations Act 2001 of the
Commonwealth;
"distribute", in relation to the property of a society, has a
25 meaning affected by subsection (2);
"maximum distribution" has the meaning given in
section 10(3);
"membership share" means the share or other interest in a
society a person must make payments in respect of before
30 being able to exercise rights of membership of the society;

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Housing Societies Repeal Bill 2005
Preliminary Part 1

s. 4

"preservation day" means 21 October 2004.
(2) In this Act, a reference to distributing property of a society to a
member or director is to be read as including a reference to
applying the property for the benefit of the member or director
5 and to releasing (wholly or partly) the member or director from
a liability the member or director has to the society.
(3) A reference to a provision of the Corporations Act as applied, is
a reference to that provision of the Corporations Act as applied
because of section 71 of the Housing Societies Act 1976.
10 (4) Unless the contrary intention appears, other words and
expressions used in this Act have the same respective meanings
as they have in the Housing Societies Act 1976.

4. Relationship of this Act to the Housing Societies Act 1976
and the rules of societies
15 (1) To the extent of any inconsistency between the provisions of
this Act and the provisions of the Housing Societies Act 1976
the provisions of this Act prevail.
(2) To the extent of any inconsistency between the provisions of
this Act and the provisions of the rules of a society the
20 provisions of this Act prevail.

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Housing Societies Repeal Bill 2005
Part 2 Winding up of societies

s. 5

Part 2 -- Winding up of societies
5. Purpose of this Part
The purpose of this Part is to ensure that --
(a) each society is wound up; and
5 (b) apart from being used to pay the liabilities of the
society, the property of each society is distributed so
that --
(i) each member (other than a contributing member)
and each director receives no more than the
10 refund of his or her membership share;
(ii) each contributing member receives no more than
the refund of his or her membership share and
the maximum distribution for that member; and
(iii) the remainder is transferred to the State.

15 6. Application of this Part
(1) Sections 7, 8, 14 and 15 do not apply to or in relation to a
society in respect of which an involuntary winding up is taking
place.
(2) In this section --
20 "involuntary winding up" means a winding up other than a
voluntary winding up.

7. Societies to cease carrying on business
(1) A society must not commence or carry on new business after
commencement day (for example, obtain a new member or
25 issue a new loan).
(2) A society must cease to carry on business before the end of the
60th day after commencement day except so far as is, in the
opinion of the liquidator of the society, required for the winding
up of that business.

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Housing Societies Repeal Bill 2005
Winding up of societies Part 2

s. 8

8. Societies to be wound up
(1) The directors of each society are to cause the society to be
wound up once the society has ceased to carry on business.
(2) The winding up is to be in accordance with Part 5.5 of the
5 Corporations Act as applied.
(3) For the purposes of this section, the society is to be taken to
have --
(a) resolved, by special resolution, that the society be
wound up; and
10 (b) complied with section 491(2) of the Corporations Act as
applied.

9. Minister may intervene
(1) If a society has not appointed a liquidator to wind up the society
before the end of the 60th day after commencement day, the
15 Minister may appoint a liquidator to wind up the society.
(2) The Minister may replace the liquidator or liquidators of a
society (whether or not appointed by the Minister) if --
(a) the winding up of the society has not been completed
within 12 months after commencement day or the
20 Minister is satisfied that the winding up of the society is
unlikely to be completed within that time;
(b) the Minister is satisfied that the circumstances that gave
rise to the delay in winding up the society were within
the control of the liquidator or liquidators; and
25 (c) the Minister is satisfied that it is appropriate to do so.

10. Distribution of property of societies on or after
preservation day
(1) The distribution of property of a society to its members or
directors on or after preservation day, whether on or before the

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Housing Societies Repeal Bill 2005
Part 2 Winding up of societies

s. 10

winding up of the society and whether on one or more than one
occasion, is limited to --
(a) for a member (other than a contributing member) or
director of the society -- the amount the member or
5 director paid for his or her membership share; and
(b) for a contributing member of the society -- the sum of
the amount the member paid for his or her membership
share and the maximum distribution for that member.
(2) On the winding up of a society, on or after preservation day, the
10 property of the society must be distributed (subject to the limits
set out in subsection (1)) in the following order --
(a) first, in satisfaction of its liabilities;
(b) secondly, by paying to each person who was a member
or director of the society at the time the winding up
15 commenced the amount the person paid for his or her
membership share;
(c) thirdly, by paying to each person who was a contributing
member of the society on preservation day the
maximum distribution for that person;
20 (d) fourthly, by paying the remainder to the Minister.
(3) The maximum distribution for a contributing member of a
society is the lesser of --
(a) $4 000; and
(b) the amount of the advance of money made by the
25 society to the member that is outstanding on
preservation day.
(4) An amount to be paid to the Minister under subsection (2)(d) is
a debt due to the State and may be recovered in a court of
competent jurisdiction.

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Housing Societies Repeal Bill 2005
Winding up of societies Part 2

s. 11

11. Application of certain distributions after commencement
A distribution to a contributing member referred to in
section 10(1)(b) or (2)(c) must be applied as follows --
(a) first, in reduction of the amount of any loan to the
5 person by the society (including a loan that, during the
course of the winding up of the society, is assigned to
another person);
(b) secondly, by paying any remaining amount to the
person.

10 12. Recovery of distributions not in accordance with this Part
(1) This section applies to and in relation to a society in existence
on preservation day, whether or not the society is wound up or
ceases to exist before commencement day.
(2) If property of the society is distributed to its members or
15 directors on or after preservation day other than in accordance
with the limits set out in section 10(1), each member and each
director who has received more than the member or director is
entitled to under section 10(1) must pay to the Minister an
amount equal to the value of the excess amount received by the
20 member or director.
(3) An amount to be paid to the Minister under subsection (2) is a
debt due to the State and may be recovered in a court of
competent jurisdiction.
(4) If, because the property of the society has not been applied in
25 accordance with section 10, a contributing member has not
received the amount the member is entitled to under
section 10(1), the Minister may pay to the member an amount
worked out so that the member will be in the same position as
he or she would have been had the property been applied in
30 accordance with section 10.
(5) Payments under subsection (4) are charged to the Social
Housing Account.

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Housing Societies Repeal Bill 2005
Part 2 Winding up of societies

s. 13

13. Payments into and out of the Social Housing Account
(1) An account called the Social Housing Account is established as
part of The State Housing Commission Fund referred to in
section 62(2) of the Housing Act 1980.
5 (2) Each amount paid to the Minister under section 10(2)(d) or
section 12(2) must be credited to the Social Housing Account.
(3) The Social Housing Account may be applied by the Minister,
but only for the following purposes --
(a) social housing purposes;
10 (b) payments under section 12(5).
(4) If the Minister is satisfied that no money will be credited to the
Social Housing Account and that all amounts in the account
have been applied, the Minister may, by notice in the Gazette,
close the account referred to in section 13(1).
15 (5) To the extent of any inconsistency between the provisions of
this section and the provisions of the Housing Act 1980 the
provisions of this section prevail.

14. Liquidator's report
The liquidator or liquidators of a society must give to the
20 Minister the account the liquidator is, or liquidators are,
required to make under section 509(1) of the Corporations Act
as applied as soon as the affairs of the society are fully wound
up.

15. Extent of application of provisions of the Corporations Act
25 (1) To the extent of any inconsistency between the provisions of
this Part and the provisions of the Corporations Act as applied,
the provisions of this Part prevail.
(2) Despite section 71 of the Housing Societies Act 1976 --
(a) section 502 of the Corporations Act does not apply in
30 relation to a liquidator of a society;

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Housing Societies Repeal Bill 2005
Winding up of societies Part 2

s. 16

(b) section 508 of the Corporations Act does not apply in
relation to a society; and
(c) section 509 of the Corporations Act does not apply in
relation to a society to the extent to which that section
5 relates to holding a meeting of the society.
(3) Section 503 of the Corporations Act as applied applies to a
liquidator of a society as if the reference in it to the Court were
a reference to the Minister.

16. Housing Societies Act 1976 amended
10 (1) The amendments in this section are to the Housing Societies
Act 1976*.
[* Reprinted as at 9 November 2001.
For subsequent amendments see Western Australian
Legislation Information Tables for 2004, Table 1, p. 212.]
15 (2) Section 59(4a) is repealed and the following subsections are
inserted instead --
"
(4a) Where a society has less than 5 directors, or less than
the number of directors that the Registrar has approved
20 under subsection (2), the Registrar may appoint as a
director such person or persons as he thinks fit.
(4b) The duty to fill a vacancy in the office of a director
within 60 days under subsection (4) ceases once the
Registrar has made an appointment under
25 subsection (4a).
".

17. Transitional regulations
(1) If there is no sufficient provision in this Act for dealing with a
transitional matter the Governor may make regulations
30 prescribing all matters that are required, necessary or convenient
to be prescribed in relation to that matter.

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Housing Societies Repeal Bill 2005
Part 2 Winding up of societies

s. 17

(2) Any regulations made under this section must be made within
12 months after commencement day.
(3) In subsection (1) --
"transitional matter" means a matter of a transitional or
5 savings nature in connection with the winding up of
societies because of this Act or with the repeal of the
Housing Societies Act 1976 by this Act.
(4) If the regulations provide that a state of affairs is to be taken to
have existed, or not to have existed, on and from a day that is
10 earlier than the day on which the regulations are published in
the Gazette but not earlier than commencement day, the
regulations have effect according to their terms.
(5) If the regulations contain a provision referred to in
subsection (4), the provision does not operate so as --
15 (a) to affect in a manner prejudicial to any person (other
than the State), the rights of that person existing before
the day of publication of those regulations; or
(b) to impose liabilities on any person (other than the State
or an authority of the State) in respect of anything done
20 or omitted to be done before the day of publication of
those regulations.

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Housing Societies Repeal Bill 2005
Repeal of Acts and consequential amendments to other Acts Part 3

s. 18

Part 3 -- Repeal of Acts and consequential
amendments to other Acts
18. Housing Societies Act 1976 repealed
The Housing Societies Act 1976 is repealed.

5 19. Housing Loan Guarantee Act 1957 repealed
The Housing Loan Guarantee Act 1957 is repealed.

20. Civil Judgments Enforcement Act 2004 amended
(1) The amendments in this section are to the Civil Judgments
Enforcement Act 2004*.
10 [* Act No. 28 of 2004.]
(2) Section 45 is amended in the definition of "financial institution"
as follows:
(a) after paragraph (c) by inserting --
" or ";
15 (b) by deleting paragraph (d) and "or" after it.

21. Companies (Co-operative) Act 1943 amended
(1) The amendments in this section are to the Companies
(Co-operative) Act 1943*.
[* Reprinted as at 14 January 2000.
20 For subsequent amendments see Western Australian
Legislation Information Tables for 2004, Table 1, p. 74.]
(2) Section 46(3a) is amended by deleting paragraph (a) and "or"
after it.
(3) Section 172(1) is amended by deleting paragraph (a) and "or"
25 after it.
(4) Section 176A(1)(c) is deleted.

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Housing Societies Repeal Bill 2005
Part 3 Repeal of Acts and consequential amendments to other Acts

s. 22

(5) Section 366 is amended in the definition of "Company" by
deleting ", or a society registered under the Housing Societies
Act 1976".

22. Country Housing Act 1998 amended
5 (1) The amendment in this section is to the Country Housing
Act 1998*.
[* Reprinted as at 13 December 2002.
For subsequent amendments see Western Australian
Legislation Information Tables for 2004, Table 1, p. 99-100
10 and Act No. 49 of 2004.]
(2) Section 43 is repealed.

23. Credit (Administration) Act 1984 amended
(1) The amendment in this section is to the Credit (Administration)
Act 1984*.
15 [* Reprint 2 as at 6 August 2004.
For subsequent amendments see Western Australian
Legislation Information Tables for 2004, Table 1, p. 103.]
(2) Section 7(1)(h) is deleted.

24. Credit Act 1984 amended
20 (1) The amendment in this section is to the Credit Act 1984*.
[* Reprinted as at 6 April 2001.
For subsequent amendments see Western Australian
Legislation Information Tables for 2004, Table 1, p. 103-04.]
(2) Section 18(1) is amended by deleting ", or a society registered
25 under the Housing Societies Act 1976,".

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Housing Societies Repeal Bill 2005
Repeal of Acts and consequential amendments to other Acts Part 3

s. 25

25. Criminal Property Confiscation Act 2000 amended
(1) The amendment in this section is to the Criminal Property
Confiscation Act 2000*.
[* Act No. 68 of 2000.
5 For subsequent amendments see Western Australian
Legislation Information Tables for 2004, Table 1, p. 112 and
Act No. 84 of 2004.]
(2) The Glossary is amended in the definition of "financial
institution" by deleting paragraph (d).

10 26. Equal Opportunity Act 1984 amended
(1) The amendments in this section are to the Equal Opportunity
Act 1984*.
[* Reprint 4 as at 1 April 2005.
For subsequent amendments see Act No. 59 of 2004.]
15 (2) Section 35N(1) is amended as follows:
(a) after paragraph (b) by inserting --
" or ";
(b) after paragraph (c) by deleting "; or" and inserting a full
stop;
20 (c) by deleting paragraph (d).
(3) Section 66ZS(1)(a) is amended as follows:
(a) after subparagraph (ii) by inserting --
" or ";
(b) after subparagraph (iii) by deleting "or";
25 (c) by deleting subparagraph (iv).
(4) Section 69(1)(b) is amended as follows:
(a) after subparagraph (ii) by inserting --
" or ";
(b) after subparagraph (iii) by deleting "or";

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Housing Societies Repeal Bill 2005
Part 3 Repeal of Acts and consequential amendments to other Acts

s. 27

27. Finance Brokers Control Act 1975 amended
(1) The amendment in this section is to the Finance Brokers
Control Act 1975*.
5 [* Reprinted as at 3 March 2000.
For subsequent amendments see Western Australian
Legislation Information Tables for 2004, Table 1, p. 157-8.]
(2) Section 5(1)(c) is deleted.

28. Housing Act 1980 amended
10 (1) The amendments in this section are to the Housing Act 1980*.
[* Reprinted as at 27 May 1999.
For subsequent amendments see Western Australian
Legislation Information Tables for 2004, Table 1, p. 209.]
(2) Section 52(1) is amended in the definition of "lending
15 institution" by deleting paragraph (a).
(3) Section 55(5) is amended by deleting "or on termination of the
lending institution in the case of a housing society;".

29. Real Estate and Business Agents Act 1978 amended
(1) The amendments in this section are to the Real Estate and
20 Business Agents Act 1978*.
[* Reprint 5 as at 8 April 2005.
For subsequent amendments see Western Australian
Legislation Information Tables for 2004, Table 1, p. 381.]
(2) Section 131A is amended in the definition of "lending
25 institution" as follows:
(a) after paragraph (a) by inserting --
" or ";
(b) by deleting paragraph (c) and "or" after it.

page 14
Housing Societies Repeal Bill 2005
Repeal of Acts and consequential amendments to other Acts Part 3

s. 30

(3) Section 131O(1) is amended as follows:
(a) after paragraph (b) by inserting --
" and ";
(b) by deleting paragraph (e) and "and" after it.

5 30. Stamp Act 1921 amended
(1) The amendments in this section are to the Stamp Act 1921*.
[* Reprint 14 as at 12 September 2003.
For subsequent amendments see Western Australian
Legislation Information Tables for 2004, Table 1, p. 426.]
10 (2) The Third Schedule is amended by deleting items 3(2) and
7(11).

31. Western Australian Treasury Corporation Act 1986 amended
(1) The amendment in this section is to the Western Australian
Treasury Corporation Act 1986*.
15 [* Reprinted as at 5 January 2001.
For subsequent amendments see Western Australian
Legislation Information Tables for 2004, Table 1, p. 499.]
(2) Schedule 1 item 4 is deleted.

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