Melbourne Co-Operative Book Shop Limited (in Liq) [2015] VSC 69 (6 March 2015) - Corporate Law

Running head: CORPORATE LAW
CORPORATE LAW
Name of the Student
Name of the University
Author Note

1CORPORATE LAW
Task 1
Melbourne Co-Operative Book Shop Limited (in Liq) [2015] VSC 69 (6 March 2015)
Facts
Melbourne Co-Operative Book Shop Limited was an organization that engaged in the
business of selling books as a Co-Operative society. The members of the society would be
paying nominal membership fees and in exchange for the same the society would sell books at
discounted prices to its members. The company was to be wound up and a liquidator was
appointed. Even after all the debts of the organization had been extinguished there remained a
large amount of surplus1. This surplus could not be distributed in any form and thus the final
mode of mobilization of such a surplus needs to be determined.
Issues
This case was being heard by the Supreme Court of Victoria. Barring the liquidators
costs, the company has a huge surplus which could not be practically distributed among all the
members of the society. The liquidator stated that it would be more appropriate to give these
funds to a University for provision of scholarships. This would facilitate higher education and
would be an appropriate mode of mobilization of these surplus funds. Thus this was the sum of
the application before the Supreme Court of Victoria and thus it would need to determine if the
same can be allowed in light of due process of law2.
1 Hanrahan, Pamela F., Ian Ramsay, and Geofrey P. Stapledon. "Commercial applications of company law." (2013).
2 Finch, Vanessa, and David Milman. Corporate insolvency law: perspectives and principles. Cambridge University
Press, 2017.