National Water Act, 1998 (Act No. 36 of 1998)Chapter 8 : Water User Associations97. Winding up affairs of disestablished water user association |
| (1) | When a water user association is disestablished, its affairs must be wound up— |
| (a) | as provided for in its constitution; or |
| (b) | by a person appointed by the Minister in accordance with directives given by the Minister if the constitution does not provide for winding up. |
| (2) | The costs of winding up a water user association are a cost against the estate of the association. |
| (3) | Creditors of a water user association must be paid according to the order of preference established by the Insolvency Act, 1936 (Act No. 24 of 1936). |
| (4) | If the affairs of a water user association are wound up, the Minister may direct that an amount equivalent to any financial contributions with interest made to the association from public funds be reimbursed, before assets are distributed among the members of the association. |
| (5) | No transfer duty, other tax or duty is payable in respect of the transfer of any assets under subsection (4). |