The issue raised by the case study are: How the surplus should be distributed?, Whether the Social Member should be included in the decision-making process?
Facts
Austinmer Bowling Club Ltd is a company limited by guarantee established under the Companies Act 1961 (NSW). It was recorded for the purpose of the Registered Clubs Act 1976 (NSW). The Austinmer Bowling Club consisted 552 Members: including 85 Bowling Members, 7 life Members and 460 Social Members by the end of financial year (31 May 2007). The club was facing financial crisis and the bowling activities were ceased in September 2007, and as of then membership in the club declined from 552 members to 384 members.
As at 22 October 2007, the club introduced voluntary administration
