New South Wales Consolidated Acts

CO-OPERATIVES ACT 1992 - SECT 266

266 Application of Corporations Act to issues of debentures

(cf Vic Act s 263)

(1) Subject to subsection (2), the debentures of a co-operative are declared to be applied Corporations legislation matters for the purposes of Part 3 of the Corporations (Ancillary Provisions) Act 2001 in relation to the provisions of Part 1.2A (Disclosing entities), Chapter 2L (Debentures), Chapter 6D (Fundraising) and Part 7.10 (Market misconduct and other prohibited conduct relating to financial products and financial services) of the Corporations Act, subject to the following modifications:

(a) the provisions apply as if a co-operative were a company,

(b) a reference in those provisions to a corporation includes a reference to a co-operative,

(c) a reference in those provisions to ASIC is a reference to the Registrar.

Note: See the note to section 10 (1).

(2) The provisions of the Corporations Act made applicable to the debentures of a co-operative by this section do not apply to the following:

(a) a loan to which section 268 of this Act applies,

(b) an issue of debentures of a co-operative that is made:

(i) solely to members, or

(ii) solely to members and employees of the co-operative, or

(iii) to a person who on becoming an inactive member of the co-operative has had his or her share capital converted to debt.

(3) Expressions used in this section that are not defined in this Act have the same meaning as in the Corporations Act.

(4) The Registrar may exempt a co-operative from any of the requirements of the Corporations Act applied by this section.

(5) An exemption may be granted unconditionally or subject to conditions. A co-operative that contravenes a condition of an exemption is taken not to be exempt from the requirements of the Corporations Act applied by this section.