New South Wales Consolidated Acts

CO-OPERATIVES ACT 1992 - SECT 282

282 Distribution of surplus or reserves to members

(cf Vic Act s 273)

(1) The rules of a trading co-operative may authorise the co-operative to apply a part of the surplus arising in any year from the business of the co-operative or a part of the reserves of the co-operative by:

(a) distribution to members as a rebate on the basis of business done with the co-operative, or

(b) the issue of bonus shares to members on the basis of the members’ dealings with the co-operative or on the basis of shares held by the members, or

(c) the issue to members of a limited dividend for shares held by the members.

(2) The amount of any rebate or dividend payable to a member under subsection (1) may, with the consent of the member, be applied:

(a) in payment for the issue to the member of bonus shares, or

(b) as a loan to the co-operative.

(3) In this section "limited dividend" means a dividend that does not exceed the amount prescribed by the regulations or such other amount or rate as the Registrar may approve in any particular case.