Australian Capital Territory Consolidated Acts

COOPERATIVES ACT 2002 - SECT 77

    (1)     If a member is expelled from a cooperative in accordance with its rules, the cooperative must, within 1 year after the day of the expulsion—

        (a)     repay to the former member an amount (the repayable amount ) equal to the amount paid up on the shares held by the former member at the expulsion, less any amount owed by the former member to the cooperative at the expulsion under the rules of the cooperative or any contract or otherwise; or

        (b)     apply, in accordance with subsection (2), the repayable amount if—

              (i)     the board is of the opinion that repayment would adversely affect the financial position of the cooperative; or

              (ii)     the board and the former member agree.

    (2)     The repayable amount may be applied in 1 of the following ways:

        (a)     the cooperative may appropriate the amount owing as a donation to the cooperative, but only if the former member agrees in writing to the donation;

        (b)     if the cooperative is a deposit-taking cooperative—the cooperative may apply the amount as a deposit by the former member with the cooperative;

        (c)     the cooperative may allot or issue debentures of the cooperative to the former member in satisfaction of the amount.

    (3)     However, the deposit or debenture must be repaid at the time required under section 135 (2).

    (4)     Payment of any amount payable under this section must be made at the time decided by the board of the cooperative, but not later than 1 year after the day of the expulsion.

    (5)     Shares in relation to which capital has been repaid must be cancelled.