Act No. 44 of 1950.
(4) Notwithstanding anything to the contrary contained in any instrument, rule or agreement governing the relations between the unlawful organization and its office-bearers, officers or members, any such office-bearer, officer or member may by resignation terminate his relationship with the unlawful organization as from the date of the resignation.
4. (1) The liquidator shall forthwith take possession of all the property vested in him under paragraph (b) of sub-section (1) of section three and satisfy himself as to the adequacy of the assets to pay the debts of the unlawful organization.
(2) If the assets are adequate to pay the debts, he shall after the expiration of a period of at least six months from the date upon which the organization became an unlawful organization take all steps (including the institution of legal proceedings) necessary to liquidate them and to pay out of the proceeds, the debts which have been proved to his satisfaction.
(3) Any balance remaining after the debts have been paid shall be distributed to one or more charitable or scientific organizations designated by the Minister.
(4) If the assets are not adequate to pay the debts of the unlawful organization the liquidator shall liquidate and distribute the assets as if he were a trustee or a liquidator, as the case may be, administering and distributing the assets of an insolvent estate or company.
(5) For the purpose of such liquidation and distribution, the date upon which the organization became an unlawful organization in terms of sub-section (1) of section two or a proclamation under sub-section (2) of the said section shall be regarded as the date of sequestration or winding-up as the case may be.
(6) Any matter relating to such liquidation and distribution upon which a creditor would have been entitled to vote, if the estate of the unlawful organization had been sequestrated or wound up, shall be determined by a majority of votes reckoned according to the number and value of claims proved to the satisfaction of the liquidator.
(7) The account of a liquidator liquidating and distributing assets under sub-section (4) shall be advertised by him and confirmed by the Master in like manner and with like effect as an account framed by a trustee or liquidator, as the case may be, in an insolvent estate is advertised and confirmed.
(8) Any property of the unlawful organization which is not liquidated under sub-section (1) or (4), shall be disposed of as the Minister may direct.
(9) The Minister may at any time by notice in the Gazette and subject to such modifications as he may deem fit, apply in relation to the distribution of the assets or the payment of the debts of the unlawful organization under this section, such provisions of the Companies Act, 1926 (Act No. 46 of 1926), or the Insolvency Act, 1936 (Act No. 24 of 1936), as are not inconsistent with this Act, as may be necessary in a particular case for the proper distribution of the assets or the payment of the debts of the unlawful organization, and may in like manner amend or withdraw any such notice.
