New South Wales Consolidated Acts

CO-OPERATIVES ACT 1992 - SECT 290

290 Shares to be forfeited to remedy contravention

(1) If a person has a relevant interest in a share of a co-operative in contravention of this Division, the board of the co-operative is to declare to be forfeited sufficient of the shares in which the person has a relevant interest to remedy the contravention.

(2) The shares to be forfeited are:

(a) the shares nominated by the person for the purpose, or

(b) in the absence of such a nomination-the shares in which the person has had a relevant interest for the shortest time.

(3) A declaration of the board that shares are forfeited operates to forfeit the shares concerned.

(4) Sections 134-136 (which concern the repayment of amounts due on shares forfeited under the active membership provisions) apply to and in respect of shares forfeited under this section as if the shares had been forfeited under Part 6 (Active membership requirements).