New South Wales Consolidated Acts New South Wales Consolidated Acts(cf Vic Act s 138)
(1) If the membership of a member of a co-operative is cancelled under this Part, the co-operative must, within 12 months after the date of cancellation:(a) repay to the former member the amount due to the member in respect of that cancellation, or(b) apply that amount in accordance with subsection (2) if:(i) the board is of the opinion that repayment would adversely affect the financial position of the co-operative, or(ii) the board and the former member so agree.
(2) The amount due may be applied as follows:(a) if the co-operative is a deposit-taking co-operative, the co-operative may apply the amount as a deposit by the former member with the co-operative (subject to the requirements of section 135 as to interest on the deposit),(b) the co-operative may allot or issue debentures or CCUs of the co-operative to the former member in satisfaction of the amount,(c) the co-operative may appropriate the amount due as a donation to the co-operative, but only if the former member consents in writing to the donation.
(3) The amount due to a member in respect of the cancellation of membership includes any amount paid up in respect of shares forfeited as a result of the cancellation of membership.
(4) If the former member is subsequently readmitted to membership, any amount held by the co-operative under this section must, if the member so requests, be applied towards the cost of admission to membership (including any subscription for share capital).
(5) If:(a) a former member cannot be found, after the use of all due diligence by the co-operative to find the former member, and(b) the amount otherwise required to be paid under this section does not exceed $100 (or any other amount that may be prescribed by the regulations),the co-operative may retain that amount.