Section 18: Effect of winding up

18. Effect of winding up (1) Where a registered association is wound up under section 10, 15 or 16, all the property of that association shall vest in the Registrar who shall— (a) use the property towards meeting, as far as possible, all the debts and liabilities of the association and the costs of the winding up; and (b) transfer any remaining property to a registered association designated by the association under subsection (2) or (3). (2) Every association shall, on its formation, designate a registered association to which, in the event of the association being wound up, its remaining property under subsection (1) (b) shall be transferred. (3) A designation under subsection (2) may be varied— (a) by a resolution of the annual general meeting of the association; or (b) by a special resolution under section 15 (6) or 16 (1). (4) Where— (a) a registered association has not designated an association under subsection (2) or (3) to which any property is to be transferred under subsection (1) (b); or (b) the association designated under subsection (2) or (3) refuses to accept any property to be transferred under subsection (1) (b), the property shall vest in the State. R16 – 9 [Issue 1] Registration of Associations Act (5) Any transfer of property under subsection (1) shall be exempt from the payment of any duty, fee or charge which would otherwise be payable to the Government. (6) Any person who acts or purports to act as an officer of an association which has been wound up, or who fails to deliver to the Registrar any property of an association which is required to be wound up, shall commit an offence. [S. 18 amended by Act 48 of 1991.] PART V – ADMINISTRATIVE PROVISIONS