New South Wales Consolidated Acts

CO-OPERATIVES ACT 1992 - SECT 156

156 Bonus share issues

(cf Vic Act ss 156 and 158)

(1) The rules of a trading co-operative may authorise the issue of bonus shares to members of the co-operative if the assets of the co-operative (other than those acquired for resale at a profit):

(a) have been sold at a profit, or

(b) have been revalued at a greater value than that disclosed prior to the revaluation in the books of the co-operative.

(2) Bonus shares may be issued in accordance with the rules, subject to the following restrictions:

(a) each issue must have been approved by a special resolution of the co-operative,

(b) they are to be issued as fully paid up shares with no payment required to be made by a member of the co-operative to whom they are issued,

(c) they are to be issued only in respect of shares that are fully paid up as at the date of issue of the bonus shares,

(d) the total nominal value of bonus shares issued by a co-operative under this section during any 12 month period must not exceed 20% or such other percentage as may be prescribed of the nominal value of the issued share capital of the co-operative immediately before the date of issue of the bonus shares.

(3) Notice of the meeting or postal ballot at which a resolution is to be proposed as a special resolution for the purpose of approving a bonus share issue must be accompanied by:

(a) a statement of the value of the assets concerned as disclosed in the books of the co-operative before the sale or revaluation, and

(b) if the issue arises from, or partly from, a sale of assets, a statement of the price for which the assets were sold, and

(c) if the issue arises from, or partly from, a revaluation of assets, a certificate of value of the assets, being a certificate furnished in respect of a valuation made not more than 12 months before the date of the notice by a prescribed person or a person having prescribed qualifications, and

(d) particulars of acquisitions of shares in the co-operative made during the 3 years immediately preceding the date of the notice by or on behalf of each of its directors and his or her spouse and the father, mother, children, brothers and sisters of each such director and spouse, and

(e) a certificate signed by 2 directors of the co-operative stating that to the best of their knowledge and belief the issue of bonus shares would not be imprudent and that no circumstances are known to them as to why the issue should not take place.