A member of a registered scheme may have a right to withdraw from that scheme provided that right is specified in the scheme's constitution. The extent and operation of the constitutional provisions and how that right may be exercised depends on the timing of the withdrawal and whether the scheme is liquid at the time of the withdrawal. Different and additional procedures must be observed if the scheme is illiquid at the time of withdrawal.

To determine whether a scheme is liquid, consideration is given to whether the assets of the scheme can be reasonably expected to be realised within the period specified in the constitution for satisfying withdrawal requests. The longer the period specified for satisfying withdrawal requests, the more time that the responsible entity would have to realise the assets and the more likely that the assets would be considered liquid.

Unregistered schemes are not required to follow these procedures to determine their liquidity. The scheme's constitution may specify the procedures to follow for withdrawals, in which case, those procedures must be observed and followed.

Unlisted property schemes and unlisted mortgage schemes have additional disclosure obligations to investors in respect of members' rights to withdraw from the scheme. This is because the assets of such schemes are generally real property or security over real property which cannot be realised quickly and are often illiquid. This therefore limits the ability (if any) of members to withdraw from the scheme. Accordingly, disclosure of these risks or limitations affecting their ability to withdraw from those schemes should be made to potential investors.

A member may have a right to transfer its interests to another member or person depending on the provisions in the scheme's constitution and the nature of the scheme. Relevant procedures outlined in the Corporations Act 2001 (Cth) and the ASX Listing Rules may apply in addition to those outlined in the scheme's constitution.

In addition to having rights to withdraw from the scheme if specified in the constitution, members may also exercise their Corporations Act prescribed cooling off rights within a short period of time after they initially acquire their interests in the scheme by notifying the responsible entity.

See Distinction between liquid and illiquid schemes.

See Withdrawal process, transfers and buy-backs.