New South Wales Consolidated Acts

CO-OPERATIVES ACT 1992 - SECT 266A

266A Disclosure statement

(cf Vic Act s 264)

(1) This section applies to the issue of debentures of a co-operative where the issue is made:

(a) solely to members, or

(b) solely to members and employees of the co-operative.

(2) Before issuing to the person debentures to which this section applies, a co-operative must provide a person with a disclosure statement, approved by the Registrar, and containing such information as is reasonably necessary to enable a person to make an informed assessment of the financial prospects of the co-operative, including:

(a) the purpose for which the money raised by the co-operative by the issue of debentures is to be used, and

(b) the rights and liabilities attaching to the debentures, and

(c) the financial position of the co-operative, and

(d) the interests of the directors of the co-operative in the issue of the debentures, and

(e) any compensation or consideration to be paid to officers or members of the co-operative in connection with the issue of debentures, and

(f) such other matters as the Registrar directs.

(3) 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 issue of debentures.