New South Wales Consolidated Acts

CO-OPERATIVES ACT 1992 - SECT 285

285 Acquisition and disposal of assets

(cf Vic Act s 275)

(1) A co-operative must not do any of the following things except as approved by special resolution by means of a special postal ballot:

(a) sell or lease as a going concern, the undertaking of the co-operative or a part of the undertaking that relates to its primary activities the value of which represents 5% or more of the total value of the undertaking,

(b) acquire from or dispose to a director or employee of the co-operative, or a relative (within the meaning of the Corporations Act) of such a director or employee or of the spouse of such a director or employee, of any property the value of which represents 5% or more of the total value of all the assets of the co-operative that relate to its primary activities,

(c) acquire an asset the value of which exceeds 5% or more of the assets of the co-operative if the acquisition would result in the co-operative commencing to carry on an activity that is not one of its primary activities,

(d) dispose of an asset if the disposal would result in the co-operative ceasing to carry on any primary activity of the co-operative, or in the ability of the co-operative to carry on any primary activity of the co-operative being substantially impaired either generally or in a particular geographical region.

(2) The Council may by order in writing exempt a co-operative from compliance with all or specified provisions of this section and section 194 (Special postal ballots) in relation to any matter to which this section applies and may grant such an exemption unconditionally or subject to conditions.

(3) If a co-operative contravenes this section, each person who is a member of the board of the co-operative is guilty of an offence unless the person satisfies the court that he or she used all due diligence to prevent the contravention by the co-operative.

Maximum penalty: 60 penalty units.