New South Wales Consolidated Acts

CO-OPERATIVES ACT 1992 - SECT 155

155 Members may be required to take up additional shares

(cf Vic Act s 155)

(1) If authorised by the rules of the co-operative, the board of a trading co-operative may require a member to take up or subscribe for additional shares in accordance with a proposal approved by a special resolution of the co-operative.

(2) The board of a trading co-operative may deduct amounts in payment for additional shares from money due to members in respect of dealings with the co-operative, in accordance with a proposal approved by a special resolution of the co-operative.

(3) Any proposal to require a member to take up or subscribe for additional shares must:

(a) be accompanied by a disclosure statement, approved by the Registrar, that explains the purpose for which the funds raised by the issue of the additional shares are to be used, and

(b) clearly show the total number of additional shares to be issued and the basis on which the shares are to be apportioned amongst members, and

(c) be accompanied by a statement informing the member that the member may inform the board by notice on or before the date specified in the statement (being a date before the passing of the special resolution) that the member resigns on the passing of the special resolution.

(4) Any proposal to deduct amounts in payment for additional shares from money due to members in respect of their dealings with the trading co-operative must clearly show:

(a) the basis on which the deductions are to be made, and

(b) the time and manner of making those deductions.

(5) A proposal approved under this section is binding on:

(a) all members of the trading co-operative at the date of the passing of the special resolution other than a member who has given a notice of resignation in accordance with subsection (3) (c), and

(b) all persons who become members of the trading co-operative after that date and before the total number of shares to be issued pursuant to the proposal has been issued.

(6) Sections 17 (except subsections (2), (4) and (11)) and 28A apply to the approval of a disclosure statement under this section with any necessary modifications and in particular as if any reference in section 17 to a formation meeting were a reference to the special resolution.

(7) The requirements in respect of a proposal to take up additional shares under subsection (3) do not apply to the issue of bonus shares under section 151 (4) (a), 156 or 282 (1) (b).